EDITORIAL Contents The 1999 International Gemological Symposium: What a Ride! 1 Alice Keller and Kathryn Kimmel

VALEDICTORY ADDRESSES Globalization and Technology: Dynamic Forces for the 21st Century 2 Maurice Tempelsman Meeting the Millennium in the Gem & Jewelry Trade 8 William E. Boyajian

SPECIAL SESSION Observations on GE-Processed : A Photographic Record 14 Thomas M. Moses, James E. Shigley, Shane F. McClure, John I. Koivula, and Mark Van Daele

PHOTOMONTAGE People, Places, and Events 23

ABSTRACTS OF FEATURE PRESENTATIONS / BY SESSION Changes and New Developments in Africa 34 SOURCES John J. Gurney Diamonds from Australia 37 A. J. A. (Bram) Janse Canadian Diamond Production: A Government Perspective 40 Douglas Paget Russian Diamond Sources 43 N. V. Sobolev DIAMOND The New York Diamond Market 44 MANUFACTURING Hertz Hasenfeld & DISTRIBUTION The Antwerp Diamond Sector 46 Marcel Pruwer The Indian Perspective: Challenges and New Developments 47 M. A. Mitchell Diamond Manufacturing and Distribution: The Israeli Perspective 49 Shmuel Schnitzer DIAMOND The Effect of International Economic Developments ECONOMICS on the Diamond Market 50 Carl Pearson Diamond Economics: A Dynamic Analysis 51 Martin Rapaport The Diamond Distribution System 52 Eli Haas Retail Markets and the Growing Global Significance of Branding 53 Russell Shor PERSPECTIVES A Manufacturer's Perspective 55 ON THE DIAMOND Sean Cohen MARKET The U.S. Diamond Industry 56 Benjamin Janowski Today and Tomorrow in the Japanese Jewelry Market 58 Hidetaka Kato The Developing Market in China 59 Gerald L. S. Rothschild

i COLORED STONE and Occurrences Around the World 60 SOURCES Robert E. Kane Emeralds—Recent Developments and Projected Changes in Supply 62 Dietmar Schwarz Review of Gem Localities in North America, Russia, and Southeast Asia 64 William Larson Colored Stone Sources in Africa and Madagascar 66 Abe K. Suleman COLORED STONE Will There Be Another Chance for Business in the DISTRIBUTION & Asian Colored Stone Jewelry Market? 68 MARKETING Yasukazu Suwa Snake Oil or Cedar Oil: Have Your Colored Stones Been Enhanced, and Are You Telling the Tale? 70 Gerald Manning South America: The Birth of a New Jewelry-Consuming Market 71 Daniel André Sauer PEARLS— The Present and Future of Akoya Cultured Pearls 73 THE SOURCES Shigeru Akamatsu Freshwater Pearls: New Millennium—New Pearl Order 75 James L. Peach Sr. The Tahitian Cultured Pearl: Past, Present, and Future 76 Robert Wan Cultured South Sea Pearls 77 Andy Muller GEM IDENTIFICATION The Ongoing Challenge of Diamond Identification 80 James E. Shigley The Identification of Ruby and Sapphire 82 Kenneth Scarratt Distinguishing Natural from Synthetic Emeralds 84 Karl Schmetzer Identification Challenges of the New Millennium 86 Shane F. McClure TREATMENTS Identifying Diamond Treatments 88 Ilene M. Reinitz Fluxes and the Heat Treatment of Ruby and Sapphire 90 John L. Emmett Fissure-Filled Emeralds and Their Detection 93 Henry A. Hänni An Overview of Treatments 95 Kurt Nassau TIMELESSNESS Chaumet—A Very Parisian Jeweler 97 OF ANTIQUE & Diana Scarisbrick ESTATE JEWELRY Early 20th Century Jewelry 99 Elise B. Misiorowski The Marketing of Period Jewelry During the 20th Century and into the Next Millennium 101 Joseph H. Samuel Jr. ORIGINAL & Adapting Classic Designs to Modern Markets 103 TREND-SETTING Robert Lee Morris JEWELRY DESIGN Creating a Luxury Brand 104 David Yurman

ii The American Designer Jewelry Movement: Where It Came from and Where It's Going 105 Cindy Edelstein RETAILING IN THE Perspective of a High-End Jeweler 107 NEW MILLENNIUM Stephen Magner Perspective of an Electronic Retailer 109 John Calnon Editor’s note: Because of con- Meeting Customer Needs 111 tractual restrictions, we could Matthew Stuller not include the talks of business Can a Family Business Compete speakers Peter Ueberroth, Al in the 21st Century Jewelry Market? 112 Thomas Tivol Ries, Don Tapscott, Art Laffer, and Rushworth Kidder. However, PANEL DISCUSSIONS audio recordings of most ses- Diamond Production in the 21st Century 114 sions, including the last four Manufacturing and Marketing Diamond Jewelry in the 21st Century 116 business speakers, can be pur- The Role of Laboratory-Grown Materials in the 21st Century 118 chased through The Sound of Knowledge (www.tsok.net). The Leadership Role of Fine Jewelry in the 21st Century 120 Note that, unlike a regular Marketing Pearl Jewelry in the Next Millennium 122 issue of Gems & Gemology, none Critical Issues in the 21st Century 124 of the articles or other informa- Marketing Opportunities in the 21st Century 126 tion in this volume was submit- The Importance of Electronic Networking in the 21st Century 128 ted to peer review, although sev- eral internal reviewers were THE WAR ROOMS involved in the editorial process. Branding 130 Also because of its special Appraisals 132 nature, this issue is paginated 134 separately from the other issues Disclosure 136 of G&G in this volume year, and POSTER SESSION ABSTRACTS: A MARKETPLACE OF NEW IDEAS 138 it has a separate index as well. INDEX 177

ABOUT THE COVER: The diversity of presentations at the 3rd International Gemological Symposium—from old localities to new, from period jewelry to contempo- rary, from diamonds to a vast array of colored stones and pearls—is illustrated on the cover of this special Proceedings issue: (1) Antique earrings with white drop- shaped natural pearls (each 14.3 x 10.5 mm) and diamonds; (2) a 12.5 mm Tahitian cultured black pearl; (3) a 4.40 ct violetish purple , Sri Lanka; (4) a 3.83 ct pink spinel crystal, Mogok, Myanmar; (5) a 1.76 ct blue spinel, Sri Lanka; (6) a 1.53 ct pur- ple-red spinel, Vietnam; (7) a 16.95 ct dodecahedral yellow diamond crystal, Ivory

Coast; (8) a 6.58 ct “Jubilee”-cut J-VS1 diamond; (9) a 0.65 ct Fancy Vivid yellow dia- mond; (10) a 0.30 ct Fancy Deep blue diamond; (11) a 0.31 ct Fancy Intense purple- pink diamond; (12) a 10.07 ct tanzanite in a platinum and ring designed by Bernd Munsteiner; (13) a 12.64 ct spessartine , Kunene River, Namibia; (14) a 7.54 ct green tourmaline, Paraíba, Brazil; (15) a 5.84 ct greenish blue tourmaline, Paraíba, Brazil; (16) a 5.04 ct ruby, Malawi; (17) a 2.12 ct emerald, Coscuez, Colombia; (18) a 3.05 ct sapphire. Stones and jewelry from the collection of Michael M. Scott. Photo © Harold & Erica Van Pelt—Photographers, Los Angeles, California

Color separations for Gems & Gemology are by Pacific Color, Carlsbad, California. Printing is by Fry Communications, Inc., Mechanicsburg, Pennsylvania. © 1999 Gemological Institute of America All rights reserved ISSN 0016-626X

iii VOLUME 35 NO. 3 EDITORIAL STAFF Editor-in-Chief Editor Editors,Gem Trade Lab Notes Richard T. Liddicoat Alice S. Keller Thomas M. Moses Publisher 5345 Armada Drive Ilene Reinitz William E. Boyajian Carlsbad, CA 92008 Shane F. McClure (760) 603-4504 Associate Editor e-mail: [email protected] Editors, Gem News John Sinkankas Mary L. Johnson, John I. Koivula, Senior Editor Technical Editor Dino DeGhionno, and Brendan Laurs Shane F. McClure Carol M. Stockton e-mail: [email protected] Editors, Book Reviews Assistant Editor Subscriptions Stuart Overlin Susan B. Johnson Debbie Ortiz Jana E. Miyahira-Smith e-mail: [email protected] (800) 421-7250, ext. 7142 Contributing Editor Fax: (760) 603-4595 Editor, Gemological Abstracts John I. Koivula e-mail: [email protected] A. A. Levinson

PRODUCTION STAFF Art Director Production Assistant WEB SITE Seth Hogan Carole Johnson www.giaonline.gia.edu

EDITORIAL REVIEW BOARD Alan T. Collins Alan Jobbins Kurt Nassau London, United Kingdom Caterham, United Kingdom P.O. Lebanon, New Jersey G. Robert Crowningshield Mary L. Johnson George Rossman New York, New York Carlsbad, California Pasadena, California John Emmett Anthony R. Kampf Kenneth Scarratt Brush Prairie, Washington, Los Angeles, California New York, New York Emmanuel Fritsch Robert E. Kane Karl Schmetzer Nantes, France San Diego, California Petershausen, Germany C. W. Fryer John I. Koivula James E. Shigley Santa Monica, California Carlsbad, California Carlsbad, California Henry A. Hänni A. A. Levinson Christopher P. Smith Basel, Switzerland Calgary, Alberta, Canada Lucerne, Switzerland C. S. Hurlbut, Jr. Thomas M. Moses Cambridge, Massachusetts New York, New York

SUBSCRIPTIONS and SINGLE COPIES Subscriptions to addresses in the U.S.A. are priced as follows: $69.95 for one year (4 issues), $179.95 for three years (12 issues). Subscriptions sent elsewhere are $80.00 for one year, $210.00 for three years. Special annual subscription rates are available for all students actively involved in a GIA program: $59.95 to addresses in the U.S.A.; $70.00 elsewhere. Your student number must be listed at the time your subscription is entered. Single copies of this special Proceedings issue may be purchased for $24.95 in the U.S.A., $35.00 elsewhere. Discounts are given for bulk orders of 10 or more of any one issue. A limited number of back issues of G&G are also available for purchase. Please address all inquiries regarding subscriptions and the purchase of single copies or back issues to the Subscriptions Department. or contact us on the Web at www.giaonline.gia.edu. To obtain a Japanese translation of Gems & Gemology, contact GIA Japan, Okachimachi Cy Bldg., 5-15-14 Ueno, Taitoku, Tokyo 110, Japan. Our Canadian goods and service registration number is 126142892RT. MANUSCRIPT SUBMISSIONS Gems & Gemology welcomes the submission of articles on all aspects of the field. Please see the Guidelines for Authors in the Spring 1999 issue of the journal, or contact the Senior Editor for a copy. Letters on articles published in Gems & Gemology and other relevant matters are also welcome. COPYRIGHT AND REPRINT PERMISSIONS Abstracting is permitted with credit to the source. Libraries are permitted to photocopy beyond the limits of U.S. copyright law for private use of patrons. Instructors are permitted to photocopy isolated articles for noncommercial classroom use without fee. Copying of the photographs by any means other than traditional photocopying techniques (Xerox, etc.) is prohibited without the express permission of the photographer (where listed) or author of the article in which the photo appears (where no photographer is listed). For other copying, reprint, or republication permission, please contact the editor. Gems & Gemology is published quarterly by the Gemological Institute of America, a nonprofit educational organization for the jewelry industry, 5345 Armada Drive, Carlsbad, CA 92008. Postmaster: Return undeliverable copies of Gems & Gemology to 5345 Armada Drive, Carlsbad, CA 92008. Opinions expressed in signed articles and abstracts are understood to be the opinions of the authors and not of the publisher or GIA. The 1999 INTERNATIONAL What GEMOLOGICAL a SYMPOSIUM Ride!

or four days in June, from the 21st to the 24th, Rounding out Symposium were wonder- we enjoyed one of the most exhilarating experi- ful social events that encouraged networking and cama- Fences in the history of our industry. More than 1,400 raderie. Highlights included the fabulous international food people from 49 countries came together at the Third at the opening reception, the Canadian wines that flowed at International Gemological Symposium to learn, to listen, to the San Diego Natural History Museum diamond gala, the work, and to play. Representatives from major diamond spectacular jewelry at the platinum breakfast and the pearl mining companies met the manufacturers who cut dia- reception, and a melange of fine Italian jewels and opera in monds, the dealers who sell them, the designers who set “Arte in Oro.” Our heartfelt thanks to the many sponsors them, and the retailers—from online shopping networks to who made these and other special aspects of Symposium large chains to single-store operations—who deliver them- possible. to the consumer. The sharing of information outside the We have put together this Proceedings volume to share presentation rooms was almost as powerful as the knowl- some of the vast information that was provided during edge that was imparted by the more than 200 speakers, pan- these four days in June. In the longest issue of Gems & elists, War Room participants, and poster session presenters. Gemology ever published, we are pleased to provide the And lest we lose sight of our roots, who will ever forget closing speeches of Maurice Tempelsman and Bill the words and wit of Richard Liddicoat, Bob Crowning- Boyajian, a special update on GE-processed diamonds, shield, Bert Krashes, and Glenn Nord at the special extended abstracts of 45 feature presentations, and sum- “Gemology Greats” session? Over the course of the last 60 maries of the eight panels. Also included is a photomontage years, these four men have transported gemology from a of the people and events that gave life to Symposium. trade to a profession, from a skill to a science. Rounding off the formal program are summaries and dia- logue from each War Room, a unique open forum at The gemological information was framed by some powerful which hundreds of attendees argued and advocated in business speakers. Former Olympics chairman Peter search of solutions to some of the industry’s most pressing Ueberroth opened Symposium by emphasizing the impor- concerns—branding, appraisals, diamond cut, and disclo- tance of “two at the top”— if we are to get ahead, we must sure. The volume concludes with more than 70 abstracts share our leadership. On the final day, marketing expert Al from the poster sessions, which proved to be a true Ries declared the brand — not the salesperson — as king in “Marketplace of New Ideas.” today’s battle for consumer dollars. “It’s the brand itself that provides credibility,” Ries said. Cyber-guru Don Tapscott, WE DEDICATE this special Proceedings issue to Dr. Vince reminded us that “we are seeing the first generation to grow Manson, whose heart and considerable intellect made the up digital— the first generation to be bathed in bits . . . there 1999 Symposium a reality. Vince mobilized an entire army are 80 million members of this generation in the United of speakers, panelists, presenters, and volunteers. And he States and they are all going to wear jewelry.” Distinguished did so while waging a private and most courageous battle economist Arthur Laffer asked rhetorically whether we for his own life. We rallied at Symposium, inspired by his thought (Federal Reserve Board Chairman) Alan Greenspan vision and bolstered by his enthusiasm. Vince passed away was going to “lose his nerve and . . . ruin the last 20 years of on July 3rd, leaving us with one of the most memorable financial credibility?” Said Laffer: “No, of course not . . . the experiences of our lives. Vince, a toast to you . . . . best is yet to come.” And noted ethicist Rushworth Kidder told jewelers at Symposium that information cannot hide forever. It always comes out. Kidder’s message was resound- Alice Keller & Kathryn Kimmel ing: “Disclose or be disclosed.” Co-Chairs, Third International Gemological Symposium

GEMS & GEMOLOGY FALL 1999 1 Globalization and

Dynamic Forces for the 21st Century

By Maurice Tempelsman Chairman, Lazare Kaplan International New York

URS IS A DYNAMIC INDUSTRY — driven by required a more knowledgeable approach, and to his the creative energy of the men and women tenacity in establishing what has become the most Owho combine the skills necessary to run a suc- recognized and respected research and educational cessful business with the sense of joy, aesthetics, and center for this industry. This was true in 1991, and it beauty that add an extra dimension to the great is even more so in 1999. The GIA provides technical human adventure. We help our customers celebrate education to more than 15,000 students in residence, the memorable moments in their lives: engagements, distance education, and extension courses. Today wedding anniversaries, births, or that wonderful there are more than 250,000 GIA graduates. The moment when a gift of beauty and distinction is the numbers are impressive. But even more impressive is tangible expression of love, gratitude, or recognition. the fact that this represents a storehouse of gemologi- And because of this, ours is also an industry of service, cal expertise, knowledge, and ethical values on which for in some small way we participate in the spirit of the industry can draw. GIA focuses on attracting each occasion we help to celebrate. young people to this industry. Since 1991, GIA’s I congratulate the organizers and planners of this “Career Fair” program has helped place thousands of symposium for their selection of experts and speakers. qualified graduates. There is no greater satisfaction You chose well and carefully. In the last few days, we than starting a young person on a successful career have heard presentations on specific technical and path. By doing so you energize the industry and bring trade issues as well as on broader themes that set a it new ideas and fresh viewpoints to meet the future context. This is as it should be, for our industry is challenges. very much part of the broader economy, and is affect-ed by the dramatic political and economic forces that affect Looking Back, Gazing Forward all other industries. As we bring to a close this tumultuous century and When I stood before you in 1991 at the Second look to the new millennium, a few thoughts come to International Gemological Symposium, in celebration mind. “It was the best of times, it was the worst of of GIA’s 60th anniversary, I could not help but reflect times.” How right Charles Dickens was. on the wisdom and foresight of GIA’s founder, It was a century that saw some of the most mon- Robert Shipley, who also founded the American strous deeds that humans can inflict on one another. Gem Society. I paid tribute to his vision to foresee It was also a century that witnessed marvelous break- that an increasingly knowledgeable consumer throughs and accomplishments in science and discov-

2 SYMPOSIUM PROCEEDINGS ISSUE Jewelry captures the spir- it of a special occasion, as with these diamond anniversary and engage- ment rings, set in gold and platinum. Courtesy of Lazare Kaplan International.

ery. With these developments came the reevaluation nomic growth would come from other parts of the of what is right and what is wrong, and what we must globe —Japan, the Pacific Rim, emerging markets. do to make this a better place for ourselves and for The U.S. market was labeled mature, tired; a new tri- our children. umphalism that proclaimed economic miracles in As we approach the new century—let me add, other parts of the world prompted us to look else- with anticipation and a measure of optimism—it is where for growth and innovation. Nor was it only useful to look at the one that is just about to end. I our industry that turned to other regions for its suggest we do so through the vision of Thomas future. Political leaders also lamented or bragged Jefferson, who said “I like the dreams of the future (depending on which side of the miracle they found better than the history of the past.” Although I am themselves), wise economists forecast, and shrewd more comfortable with that than with Shakespeare’s investors committed substantial capital to these expec- “What’s past is prologue,” today more than ever tations. However, all did not quite work out as pro- humanity can shape its destiny for good or evil. The claimed — a useful reminder of our fallibility and, let tools exist. The challenge is to muster the will, make me add, our courage in the face of what is inevitably the choices, and deploy the organizational skills to use an uncertain future. these tools effectively and creatively. This century was generous—particularly in its clos- This century was harsh on ideologies (commu- ing years —to systems of governance that struck a bal- nism, fascism, and other “isms”). Who would have ance between the freedom needed to nurture individu- thought that communism — as an idea, a form of al initiative and enterprise, and the accountability and governance, an economic system, an empire — would transparency—openness—essential to government by implode, not by conquest or war, but through its consent and the successful workings of a free economy. inability to come to grips with the objective realities Now that the post-Cold War euphoria is over, in of our age. A broader worldview and scientific politics as well as economics, a new sense of reality advances are defining and redefining daily the sub- has set in. The end of communism in Russia did not stance of power and wealth. This is true for nations produce the automatic flourishing of democracy and large and small, and for companies large and small. free-trade economies all over the globe. Nor did the This century was harsh on experts. Which political “economic miracles” and newly emerging markets analyst or economic pundit had the foresight or avoid the pitfalls and disciplines of the marketplace. temerity to predict the developments that, with Nations, like individuals and companies, can only 20/20 hindsight, we now accept as having been obvi- learn from past mistakes. It takes time to establish a ous and inevitable? At GIA’s 60th anniversary, the new mindset, a new infrastructure—all the things that U.S. economy was in recession and our diamond and are necessary for a functioning society to survive, jewelry industry was stagnant. We believed that eco- adapt, and flourish in this rapidly changing world.

GEMS & GEMOLOGY FALL 1999 3 that the individual is free to create, grow, and benefit, while at the same time is held accountable to the needs and laws of society and to the transparency required in a modern functioning economy. This, and the capacity to self-correct, are the essence of the resilience that has enabled the U.S. economy to absorb, not without pain and dislocation, but with more stability than other economies, the unexpected and unforeseen changes we have had to confront and accept. And what is true for this economy in general is equally true for our industry. Trends for the Future Now, if you will permit me, I’ll share my thoughts on two trends that will have an ongoing impact on the diamond and jewelry industry in the years to come. They are obvious, and they are not exclusive, as there are many other trends and forces we cannot yet see. But these two are important and timely: glob- alization and technology. Globalization. Much has been written and said about globalization. Although a lot of this is esoteric and even incomprehensible, deep down one feels that The economic and cultural systems that have evolved in globalization is real. Those of us who go to sea for the U.S. give the individual freedom to create. This our pleasure or adventure know that it is a tide of “Web of Life” platinum bib-style necklace is set with epic dimensions and force. We aren’t quite sure diamonds on one side and pearls on the reverse. where it will lead, but we do know or feel that, if we Designed by Robert Lee Morris, it was awarded the want to reach our destination, we had better take it Grand Prize at the 1998 “Platinum Passion” design into account as we navigate and set course. competition hosted by Platinum Guild International, No one has written more cogently and compre- and was on display in the 1999 Nature of Diamonds hensively on this subject than Thomas L. Friedman, exhibit at the San Diego Museum of Natural History. the erudite columnist of the New York Times. He uses Photo © GIA, by Harold & Erica Van Pelt. the forces of globalization as a lens through which to examine daily events in politics and economics. In his The corrective measures cannot be imposed from recent book, The Lexus and the Olive Tree (Farrar outside; they must come from within and must reflect Straus & Giroux, 1999), he argues that globalization is the history, culture, and values of each society. We not just a phenomenon or a passing trend. It inte- cannot, nor should we attempt to, export in a pack- grates capital, technology, and information across age what has worked so well in the U.S. in recent national borders in a way that creates a single global years. Nor does our apparent success justify our own market and, to some degree, a global village. He then form of triumphalism. But with caution, and a mea- suggests that you cannot understand the morning sure of modesty, it may be useful to examine why the news, know where to invest your money, or think U.S. economy has responded so well to the dramatic, about where the world is going—or where your busi- often wrenching, changes brought about by the ness is going—unless you understand how this new greater impact of global developments and rapid tech- system influences the domestic policies and interna- nological change. We possess no magic formula, nor tional relations of virtually every country. are we guided by a manifest destiny. Nevertheless, Globalization I took place between the mid-1800s through a combination of energy, luck, wisdom, and and the late 1920s. If one compares the volume of historical legacy, our system has become structured so trade and capital that flows across borders relative to

4 SYMPOSIUM PROCEEDINGS ISSUE gross national products, and the flow of labor across selves across political borders. Nor does globalization borders relative to populations, the period of global- lend itself easily to supervision and control. ization preceding World War I was similar to the one Technology. From the outer limits of our universe, to we are living through today. This first era of global- the deepest recesses of our oceans— from the micro- ization was broken apart by the successive blows of scopic world of the atom on which the physical World War I, the Russian Revolution, and the Great world is built, to the double helix of the DNA chain Depression, which combined to fracture the world that is the basis of life itself—human knowledge has both physically and ideologically. The divided globe advanced with great, bold steps. There are no limits that emerged after World War II was then frozen in to our curiosity and our vision. Progress and the place by the Cold War, which lasted roughly from change it brings cannot be stopped; nor should it be 1945 to 1989, ending with the fall of the Berlin Wall. lamented. Technology, in the final analysis, is not an Friedman maintains that what we are now living end; rather, it is a means—a tool. How we use it—for through is really Globalization II. However, today’s good or for evil, to build or to destroy—is a human era of globalization not only differs in degree, but in decision. Technology will challenge our wisdom, our important ways it also differs in kind. The previous priorities, our ethics, and even our humanity. I am con- era of globalization was built around falling trans- fident that we shall rise to the occasion, because the ben- portation costs; today’s era of globalization is built around falling telecommunications costs. He goes on to say, “If the first era of globalization shrank the The impact of globalization in the early 20th century world from a size ‘large’ to a size ‘medium’ this era of is evident in these and jade jabot brooches and globalization is shrinking the world from a size ‘medi- carved jade brooch, which derive their inspiration from um’ to a size ‘small’.” Asian decorative arts. Dating from around 1925, the I take comfort in that historical perspective: first, jewelry is courtesy of Neil Lane Jewelry, Beverly Hills, because we have been here before; and, second, because California. Photo © GIA and Tino Hammid. it disposes of the proposition that history is dead and that world economics are now driven by a “new paradigm.” History has not been suspended—we shall have plenty of opportunities to make new mistakes— nor have the inexorable economic laws that govern the marketplace and business cycle disappeared. Risk and reward will remain the benchmarks for those of us who have chosen business as a profession. But as we look at risks and rewards in the ordinary course, we must also look at them through the lens of global- ization and its impact. This leads me to the diamond industry. We have all seen and felt the impact of rapid globalization on our business. When I addressed you in 1991, growth and future expansion were perceived to lie outside the U.S. And indeed that is what happened. Diamond production expanded, investments were made, mar- keting and advertising were refocused, and a lot of us thought that a new era of growing demand in differ- ent parts of the world would sustain an uninterrupted expansion. That boom quickly reversed itself with catastrophic impact on many countries and markets, as demand suddenly declined. As the situation slowly stabilizes, the lessons learned are that, yes, we do live in a global village—and, no, we cannot isolate our-

GEMS & GEMOLOGY FALL 1999 5 efits for all of us far exceed the cost—the temporary dis- Diamond Mining. Satellite imaging, new break- comfort that comes with the need to adjust to change. throughs in geochemical and geophysical methodolo- The gem and jewelry industry is part of all this, as gy, enhanced recovery methods such as X-ray tech- it should be, although to a certain extent the rapid niques, underwater mining in deeper and deeper march of technology has had a lesser impact on our waters, and incremental improvements in standard industry than on others. Many industries have had mining procedures—have all substantially increased more dramatic exposure to technological develop- diamond production, diamond reserves, and future ments in very short time spans and have had to learn potential. The new Ekati mine in Canada’s frigid to adjust quickly. However, we have had the luxury Northwest Territories, Namdeb’s production offshore of adjusting gradually—and thus the opportunity to of Namibia, the mines in Botswana’s harsh desert, and think and correct when unavoidable and irreversible Russia’s Alrosa mines close to the North Pole are all changes challenged our industry as well. Tradition is tributes to the ingenuity and capacity of the mining always comforting, particularly in a business where the companies to develop and economically mine eternal—art and beauty—intersects with the ephemer- increasingly hard-to-access diamonds. Technology has al—commerce and change. This industry is fortunate made that possible. It is irreversible. to have so many people who understand the impor- Diamond Polishing. Laser sawing, automated cutting tance of tradition, but who also can accept change and machines, computerized planning, measuring and turn it into opportunity. As I said in my opening polishing machines, deep pressure boiling, and now remarks, ours is a joyful business—and we should do the newly announced General Electric process to all we can to keep it so—but it is not immune to all improve the color of a small portion of diamonds the technological change taking place around us and suitable to this application, have changed the capacity the resulting discomfort. Change is inevitable, and it is and economics of transforming rough stones to pol- up to us to make change our friend. ished diamonds. Technology has made that possible— Let me briefly touch on three areas of the dia- and here, too, it is irreversible. mond business where new and accelerating techno- logical development will bring change that will affect Diamond Marketing. About a year and a half ago, all of us, as well as those who purchase our products: John Chambers, the President of Cisco Systems—the (1) diamond mining, (2) diamond polishing, and (3) company that makes the black boxes that connect the diamond marketing. Internet—declared that, although most people did not grasp it yet, the Internet was about to change “every- thing” about how people work, invest, learn, shop, New technology has made it possible to recover and communicate (T. L. Friedman, “Foreign Affairs: diamonds from the Ekati mine, in the bitter cold Are You Ready?” New York Times, June 1, 1999). In of Canada’s Northwest Territories. Photo © Jiri the future, 1999 will be remembered as the year that Hermann; courtesy of BHP Diamonds Inc. the Internet really began to penetrate the conscious- ness of America. The way people buy everything from cars to airline tickets and, yes, diamonds and jewelry—as well as the way they communicate, invest, work, and learn—is being fundamentally trans- formed. Technology has made that possible. Again, it is irreversible, and it is just the beginning. U.S. Federal Reserve Chairman Alan Greenspan, testifying before the Joint Economic Committee, recently said, “Forecasting [the impact of] technology has been a daunting task.” I will not run where angels fear to tread, but let me suggest that the consequence of the technological breakthroughs in diamond min- ing is the availability of more rough diamonds in a greater variety of shapes, sizes, and qualities. The con-

6 SYMPOSIUM PROCEEDINGS ISSUE sequences of technological changes in diamond pol- ishing are a broader and more diverse supply to the consumer and some adjustments in the relationships among certain diamond grades. The consequences of the Internet are a new way of marketing and, for the consumer, a new way of purchasing diamonds. Given the conclusion that globalization and tech- nology will increasingly be part of our lives, that these trends are irreversible and will gather greater momen- tum in the years ahead, and that our industry, like all other industries, will be challenged and surprised again and again, two questions come to mind. The first is: How should we as an industry feel about With laser cutting, diamond manufacturers can globalization and technology? The answer to that simple create shapes that would have been impossible question is crucial: It will determine how we come to with traditional methods. Both this 12 mm long grips with the changes that have already occurred, and x 2 mm thick sailboat and the accompanying ten- with others that have yet to come. We can curse or nis racket were produced by this new technology. condemn the new and try to roll it back. We can pre- Photo © GIA and Tino Hammid. tend it isn’t here or that it will go away if we ignore it. Or we can, with hope and some trepidation, immune to it, and they know how to deal with inno- accept it as the unavoidable highlight of the age we vation and change. They deal with that every day. live in, and turn it to our benefit and the benefit of our customers. This requires candor, realism, opti- Third: With empowerment comes greater respon- mism, and adaptability. I have no doubt that our sibility. What parent or grandparent has not watched industry has the talent, entrepreneurship, resilience, with awe and admiration as a young child masters the and integrity to come to grips with this reality and the Internet and is “on line” for his social life, his infor- opportunity it presents. mation, his learning? What parent or grandparent has The second question is: How should we as an not realized with trepidation that the Internet is dif- industry deal with the impact of globalization and new ferent from radio, television, and newspapers in that it technologies? is totally open, interactive technology—without edi- We field that question every day. The answer is tors, censors, or filters. As you get connected, you obvious: adapt and prosper, resist and perish. Maybe have to understand that this is an empowering medi- the question should be restated: How should we as an um. It gives you millions of new choices, but many of industry deal with these issues in relation to the consumer? these will not be appropriate. For in the final analysis it is our customers who deter- This industry is fortunate to have institutions like mine whether we succeed or fail and whether this the GIA and the AGS, the brainchildren of Robert industry grows and prospers, or declines. The way we Shipley. Their job is to inform and educate in a world position our products and ourselves has an important that is constantly changing and where new technolo- bearing on the outcome. I have no easy or simple gy affects all sectors of the industry: mining, polishing, answer, but let me set forth some basic principles for a and marketing. We who care for, and benefit from, confident and optimistic outlook: this industry must also face up to the unavoidable First: Our job is to present the facts. The modern changes that globalization and technology bring. consumer is better informed, better educated, has Adjustment to some changes may be painful in the more access to information, and is better able and short run, but I submit to you, with confidence, that more willing to make up his or her own mind when globalization and technology will open new and the facts are presented. challenging opportunities for those with the vision to see them and the courage and optimism to grasp Second: Our job is to trust their judgment. Our them. This industry is too robust and too vibrant to customers are part of the changing world; they are not do otherwise.

GEMS & GEMOLOGY FALL 1999 7 By William E. Boyajian President, Gemological Institute of America Carlsbad, California

HROUGHOUT HISTORY, humankind has ply and demand, new retail formats, and sophisticated worked with stone and metal to weave the technological challenges. “fabric of passion” referred to in Vince The decade of the 1990s has been especially chal- Manson’s opening comments into items of lenging for our industry. The over-retailed ‘80s adornment.T Just as great designers and craftspeople fash- became the efficiency-minded ‘90s. Mergers, acquisi- ion these items into beautiful jewels, so have these jew- tions, and even bankruptcies dominated the scene. As els themselves helped fashion humankind. a result, the number of storefronts has been greatly Once again, we have seen how gems and jewelry reduced, and those that survived often lack the bridge the arenas of life itself. They embody beauty. trained personnel that are the hallmark of the profes- They engender love. They captivate the heart. Gems, sional jeweler. like people, have personality. They smile at us. They At the wholesale level, we have seen how markets speak to us. And we watch, and listen. can be shattered by the unknowing —or unthink- Over these past several days, we have looked at ing—actions of only a few. The emerald industry is a sources, production, distribution, and identification. case in point, where the use of unstable fillers without We’ve listened to gemologists, designers, manufactur- suitable disclosure in the search for short-term profits ers, and marketers. We’ve addressed challenging has devastated demand and left dealers struggling. issues. We’ve introduced new concepts. We’ve But something else changed: New realities set in, enlightened one another. Indeed, we have all been and these new realities require new rules. moved by the role that gems play — in science, in The thesis I propose as we close this 1999 business, in art, and in tradition. Symposium is simply this: But within this rich history lies an uneasiness about the future of the gem and jewelry industry. We are an industry in transition, This has been a century of revolutionary change: and we must adopt new rules to guide us. world wars, economic depressions, the advent of computer technology, a man on the moon, and a According to Massachusetts Institute of Tech- mission to . It has also been one of radical nology (MIT) economist Lester Thurow (1999, p. change in the gem and jewelry industry: shifts in sup- 57), “the old foundations of success are gone.” For all

8 SYMPOSIUM PROCEEDINGS ISSUE For thousands of years, gems have been fashioned into items of adornment. This magnificent dia- mond and platinum bracelet is set with the important 69.68 ct Excelsior diamond, the largest of 11 stones cut from the largest dia- mond (995.20 cts) ever found at the Jagersfontein mine. The bracelet was on view in the Nature of Diamonds exhibit at the San Diego Natural History Museum, March through September 1999. Courtesy of Mouawad Jewelers, New York. Photo © GIA, by Harold & Erica Van Pelt.

of human history, he says, the source of success has research and development. Technological advances been the control of natural resources. Land and oil are did not just happen randomly; they could be system- good examples. In our industry, the resources are dia- atically managed. Technological advances also led to monds, precious metals, colored stones, and pearls. economic and cultural change. Consider electricity: It Thurow maintains that the source of success today is spawned a whole new set of industries and radically knowledge. Knowledge has become the true altered the production processes of every existing resource. manufacturer. With the electric light bulb, night This leads us to Rule #1 for an industry in transition: became day. Performance and efficiency increased. People’s habits changed. As a result, societies, even Whoever owns the gold entire cultures, were transformed. And technology — does not always rule. again, knowledge — threatens to have a greater global impact in the coming millennium. Here is what a Technology—knowledge, really—has had a pro- senior executive at GE told me the other day: GE has found impact on the “natural” resources of the gem enormous scientific, technological, and engineering and jewelry industry. It was knowledge that allowed capabilities. General Electric wants its name associated Mikimoto to develop cultured pearls at the turn of with natural diamonds, not synthetic diamonds. GE this century. It was knowledge that helped Verneuil wants to make an impact — even help revolutionize — create synthetic corundum around the same time. It the diamond industry, in ways never before imagined. was knowledge that allowed General Electric to pro- And GE will introduce a steady stream of new tech- duce synthetic diamond in the 1950s. It was knowl- nology into the diamond business over the coming edge that helped Thai gem traders convert milky decade. This is only part of the new realities of which white Sri Lankan sapphire to beautiful blue material I speak. in the 1970s. And it is knowledge that allows GE to Such change both intrigues and intimidates. alter the color of certain natural diamonds today. Change brings progress, but it also brings increased According to Lester Thurow, the types of changes competition. I’m reminded of a recent advertisement we are seeing in the world today were last observed a in which the headline read: “Competition is a lot like century ago, during the industrial revolution. At that cod liver oil. First it makes you sick. Then it makes time, birth was given to the corporate research labo- you better.” Change puts pressure on the status quo. ratory, as well as to the concept of systematic industrial It also thins margins for some, and fattens them for

GEMS & GEMOLOGY FALL 1999 9 resources but products inherent to earth that we exploit for economic gain? Indeed, one of the biggest problems facing leaders in the new millennium will be how to develop our companies, organizations, and associations to maximize intellectual resources—to generate new ideas, new processes, new products, and new services. Knowledge is much more than data. It is a composite of experience and learning, and it con- stitutes the primary building block for any business entity. Strategic and focused, it is the key that enables one firm to do something significantly better than others. Thus, real knowledge creates real value, for stakeholders and consumers alike. Today, we must learn how to do business and make money in whole new ways, because simply owning the product is not enough. Using informa- tion to create knowledge is the byword of success for the new century. Rule #2, then, for an industry in transition, is this:

Whoever controls knowledge rules.

The 19th century marketplace was dramatically With knowledge, Japanese entrepreneur Kokichi and forever changed by the industrial revolution. Mikimoto developed the Akoya cultured pearl into a major industry. Cultured pearl necklace and earrings Companies that hesitated to embrace mass production set with diamonds and blue are courtesy of failed or were diminished. The 20th century has been Mikimoto Co. changed by the information revolution, and compa- nies that refuse to embrace the technology of today will go the way of their 19th century counterparts. others. It has a way of bringing out the best, and It is axiomatic that those who fail to remember the worst, in people. Principles become bent, skewed in past are doomed to repeat it. This must serve as a many directions. And the jewelry industry is not warning to each of us: Change and adapt, or suffer immune to change and its many consequences. the consequences . . . as Peter Ueberroth advised in How does Thurow’s theory of natural resources fit his June 21 opening address. with our industry and Rule #1? Let’s relate it to De Unfortunately, the corporate junkyard in our Beers’s natural resources and their current research on industry is littered with the wreckage of dealers, man- branding. Could it be that De Beers’s control of the ufacturers, and retailers who didn’t see it coming, supply of diamonds is not as important today as their proceeded too slowly or too cautiously, or decided to name or image? Could it be that De Beers will shift look the other way. more of its energies from controlling supply to con- The future has become clearer since our last trolling the consumer’s mind? For we are in an age, as Symposium in 1991, not just because we are eight Al Ries said earlier, when marketing in the new mil- years more advanced, but also because the elements of lennium is branding, and winning position in the an information society are better developed and mind of the consumer is vital (Ries, 1999). As savvy understood. Eight years ago we acknowledged the as De Beers is, it probably will try to control both personal computer as a revolutionary product, not supply and the mind. unlike the television was 40 years before. But we Could it be, then, that the next natural resource of could hardly have imagined the emergence of the our industry—control of knowledge—looks less natu- Internet as it exists today, let alone the convergence ral and more resourceful? For what are natural of these new communication technologies into what

10 SYMPOSIUM PROCEEDINGS ISSUE Education and knowledge provide the foundation and underpinning that allow an individual or a business to create new products and services with intrinsic as well as market value. Illustration by Peter Johnston.

can be nothing less than revolutionary in the future. person’s terror. One person’s truth becomes another We have learned that electronic commerce is both person’s lie. Finding agreement is difficult, but not a challenge and an opportunity. It is a way for nimble impossible. When reasonable people speak openly and businesses of all types to increase their effectiveness, honestly, rational compromise often prevails. This is a reach untapped markets, develop new products and noble goal as we look to the new millennium: that services, and boost profits. As Don Tapscott (1999) fair-minded people, no matter what the stakes, can told us: “More direct selling via the Internet is a cer- work together for the good of all. tainty.” Specialists will do better because they won’t Rule #3 for an industry in transition: try to be all things to all people. They’ll do their thing better, and they’ll reach more people in search of Continue to live by the Golden Rule: unusual products and services. They’ll also fill niches “Do unto others, as you would that consumers demand, now and in the future. have others do unto you.” In case you’re not convinced about Rules 1 and 2, The headline of Time magazine read: “What ever let me give you a few more industry examples that happened to ethics?” It is no coincidence that we I’m sure will hit home. How is it that information on asked a leading ethicist, Rushworth Kidder (1999) , to a piece of paper — a grading report — can appear to speak at this event. What we tried to do at be more important than the gemstone itself? How is it Symposium is share principles that can help lead and that a man who owns no diamonds, like Martin guide our trade as we work and learn together in the Rapaport, can govern the price of them? How is it new millennium. that owning proprietary technology can control the At GIA, our priorities remain the same: outlook of those who own the product it alters? That is, how can a firm like General Electric — through its Education, Research, and the Gem Trade Laboratory. new color altering process — have such a profound To be effective, education for professional develop- impact on the future livelihood of every dealer in the ment has to be grounded in reality. If learning is to be diamond pipeline? both retained and useful, it must be applied immedi- Moreover, how is it that a 10-year-old electronic ately and repeatedly. Our charter is to provide that network may do more diamond business than a 100- education efficiently, affordably, and accurately. year-old diamond bourse? How is it that the group There is probably no better goal to help us live by the owning most of the mines in Colombia cannot control Golden Rule than to be a well-educated, well-trained the price of emeralds? How is it that laser inscription can industry. After all, consumers want to buy from be an impediment in the 1980s and a security measure in knowledgeable jewelers whom they know and trust, the 1990s? How is it that the analysis of cut can lie dor- just as jewelers rely on the knowledge and integrity of mant for decades and regain life in only a few years? their suppliers. Technology not only changes the way we do At the 1991 Symposium, we revealed that the business, but it also changes the way we think. decade of the ‘90s would alter our thoughts about Technology adds new dimensions to reality and takes research in the future: Post-Cold War military tech- some away. One person’s revelation becomes another nology would be converted to commercial enterprise,

GEMS & GEMOLOGY FALL 1999 11 21st century, however, we will see the full effects of commercial exploitation of these technologies. What we are seeing with the new GE process, for example, is just the tip of the iceberg. Gemological laboratories, therefore, are challenged as never before. And if they are challenged, imagine the dilemma for dealers, manufacturers, and retailers. No wonder more people are protecting themselves with third-party documentation. No wonder they’re searching for additional measures of security. No Once considered an impediment to sales, laser inscrip- wonder they question the future. tion of a laboratory report number or other information There are common pitfalls in every industry and in on the girdle of a diamond is now a respected security every firm. The strong desire for self-preservation is measure. Photo © GIA. often coupled with an unwillingness to change and a resistance to fresh ideas. This fosters short-term think- ing and, in some people, an overriding obsession with and this new technology would begin to take its toll making money that leads them to hoard information on the trade. Quoting from my 1991 speech, “ . . . the and fail to disclose. money allocated to research on identification methods Yet mission must be more important than money, in the gem and jewelry community is miniscule com- and doing what is right must be more important than pared to that allotted to developing synthetics and determining who is right. Although I am not so naïve treatments. The jewelry industry is not prepared for as to believe that noble motives are everyone’s goal, I the potential impact of such technology. For the good do know that no one of us is as smart as all of us. Only of the industry, the technology of gemstone identifi- by working as a community will we prevail. cation must keep pace with the technology of gem We are here at Symposium as people who care. synthesis and treatments.” (Boyajian, 1992, p. 30) We are leaders who can make a difference in this In the 1990s, we tackled some of the challenges industry. While some things must change, others brought on by this new technology: fracture-filled must not. We must remain true to the basic tenets of diamonds, synthetic moissanite, new synthetic sap- our industry, our core values of knowledge, integrity, phires and , even synthetic diamonds. In the standards, and quality. Yet these virtues cannot be produced on demand. At some point, we must be Education is a major priority at GIA. Here we see a able to define what it means to act properly and jewelry manufacturing student master the skills of a responsibly. And we must always remember to live by . Photo © GIA. the Golden Rule. To summarize, then, our industry is in transition. We observe rapid change all around us, and we seek to make sense out of what, at times, appears to be chaos. I shared three Rules that I believe are axioms of the coming millennium. They are:

1. Whoever owns the gold does not always rule. 2. Whoever controls knowledge rules. 3. Live by the Golden Rule.

I have used real-life examples from our industry to make these points. In particular, the models of success in the future are not necessarily those of the past.

12 SYMPOSIUM PROCEEDINGS ISSUE Owning the gold, diamonds, colored stones, and pearls is not enough in an information society. Owning value-added skills of support, service, tech- nology and trading are at least as important. Owning a name, a brand, an image, or a reputation may be of even greater value. Some people in our industry own a segment of it through sheer knowledge and intelligence. Those people who trade off of their strategic and intellectual capacities often hold an edge over others who are working with an older model. Older models may still apply, but if your profit margin, growth, or market share is declining, consider the benefits of change. Finally, no matter what your belief system, basic values must prevail. At the end of the day, virtue wins One of the most important technological challenges of out over greed, and operating by the Golden Rule the 1990s is synthetic moissanite, a diamond simulant will be more satisfying and, ultimately, will make you that reads as diamond on a standard thermal probe. more successful. This synthetic moissanite is courtesy of Charles & So what did we learn at this Symposium? Colvard (formerly C3, Inc.) • That gem and jewelry businesses must embrace change to survive lic trust in gems and jewelry. I can only hope that this • That new treatments challenge Symposium has made even a small contribution to gemology just as new viruses challenge that effort. But it mustn’t stop here. This is not a cli- medicine max, but a beginning. Not a landing, but a launch. • That change itself means progress, The key to success in the year 2000 and beyond not demise will be the ability of each of us to anticipate and pre- • That new technologies will only increase in pare for the future. We have weathered the chal- the years ahead lenges of the past quite well, and every indication is • And that ethics and integrity that we can adapt and navigate through the rough really do matter waters ahead. This is an extremely resourceful and In conclusion, this industry’s real challenge is to resilient industry, with remarkably agile people. secure the hearts and minds of today’s astute con- As we face the coming millennium, let’s remem- sumer. We live in the greatest consumer age in the ber our experience of the Symposium. We saw the history of humankind. While this is a great time, it is future here and—while challenging —that future is also a great test for our industry. At GIA, we have bright. Let’s work together to make our dreams a attempted to do our part over the years to help secure vision, and our vision a reality, now and in the years the future of the industry and to help ensure the pub- to come.

REFERENCES recording of lecture by Al Ries presented at the Third Boyajian W.E. (1992) Facing the future in the gem and International Gemological Symposium, San Diego, jewelry industry. In A. S. Keller, Ed., Proceedings of the California, June 24, 1999. The Sound of Knowledge, International Gemological Symposium, 1991, Gemological San Diego. Institute of America, Santa Monica, CA, pp. 27–33. Tapscott D. (1999) Digital technology. Audio recording of Kidder R. (1999) Winning with ethics. Audio recording of lecture by Don Tapscott presented at the Third lecture by Don Tapscott presented at the Third International Gemological Symposium, San Diego, International Gemological Symposium, San Diego, California, June 24, 1999. The Sound of Knowledge, California, June 24, 1999. The Sound of Knowledge, San Diego. San Diego. Thurow L. (1999) Building wealth. Atlantic Monthly, June, Ries A. (1999) Marketing in the new millennium. Audio pp. 57– 69.

GEMS & GEMOLOGY FALL 1999 13 Special Session

Observations on GE-Processed Diamonds: A Photographic Record

By Thomas M. Moses, James E. Shigley, Shane F. McClure, John I. Koivula, and Mark Van Daele GIA Gem Trade Laboratory and GIA Research, New York and Carlsbad

Observations made at GIA on SOFA UGUST 1999, GIA STAFF MEMBERS had 858 GE-processed diamonds examined 960 natural diamonds that had undergone a revealed several interesting features A new process, developed by the General Electric that may be diagnostic of this Company (GE), that removes some or all of the color of a diamond. Distributed exclusively by Pegasus Overseas Limited (POL), an kind of diamond. Specifically, a Antwerp-based subsidiary of Lazare Kaplan International (LKI), the significant percentage exhibited a diamonds are referred to as GE POL or Pegasus diamonds in the slightly hazy appearance, notice- trade. These GE-processed diamonds look like untreated diamonds; able internal graining, and other however, careful examination has revealed that some of them exhib- unusual internal features. it subtle features that usually are not present in natural-color dia- monds. This article presents demographic information on 858 (of the 960) GE-processed diamonds that had been incorporated into the GIA Gem Trade Laboratory database as of July 15, 1999, and describes some of the unusual internal features that were seen. As recently stated by GE, the procedure used involves high pressure and high temperature and, to date, is effective only on certain high-puri- ty and high-clarity diamonds (J. Casey, pers. comm., 1999; see Box). Editor’s Note On June 23, at the Third International BACKGROUND Gemological Symposium, representa- Earlier this year, Pegasus Overseas Limited announced to the jewelry tives of GIA and the GIA Gem Trade industry that GE scientists had developed a new process to improve Laboratory held a special session to the color and other characteristics of a select group of natural dia- provide an update on the situation monds. According to these announcements, the diamonds would be regarding the diamonds processed by sold only through POL, and every direct purchaser would be General Electric to improve their color informed in writing by POL that they were purchasing a GE-pro- (i.e., closer to colorless). This article cessed diamond. Such sales began in June 1999. follows up on that special session with In press releases (e.g., March 1, 1999) and other public state- the statistical results and a photo- ments, POL representatives claimed that this process was designed to graphic record of GIA’s examination improve “the color, brilliance, and brightness” of qualifying dia- of a large number of such diamonds. monds, and that the results were “permanent and irreversible.” They stated that it did not involve any conventional diamond treatment

14 SYMPOSIUM PROCEEDINGS ISSUE methods (such as irradiation, laser drilling, surface coating, or fracture filling), but rather it was merely an extension of the manufacturing of rough into pol- ished diamonds. Nor did the processed diamonds require any “special care and handling.” Last, they also reported that these GE POL diamonds would “be indistinguishable” from natural-color diamonds by jewelers and gemologists using standard gem-test- ing equipment and techniques. Since the initial announcement, representatives of Figure 1. The laser-inscribed “GE POL” is readily GE, POL, and GIA have held a series of useful and visible on the girdle surface of this 1.25 ct marquise- ongoing discussions to address the concerns of the shaped diamond. Photomicrograph by John I. Koivula; jewelry trade, and ultimately the consuming public, magnified 40×. about this new GE process. These discussions result- ed in specific steps taken by GE to laser inscribe the the letters “GE POL” (figure 1), and by POL to then girdle surface of all of their processed diamonds with submit these diamonds to the GIA Gem Trade

RESEARCH ON DIAMONDS AT THE GENERAL ELECTRIC COMPANY

esearch at the General Electric Company and temperatures to which natural diamonds R on the properties of diamond as an indus- were subjected while they were deep in the trial material extends back more than 50 years. earth’s mantle (see, e.g., Kirkley et al., 1991). One result of this ongoing research program The diamonds that respond to this method rep- was the discovery of a new process that resent in volume significantly less than 1% of improves the color of a select group of rare nat- “run of mine” diamonds. After processing, most ural diamonds. Specifically, exposure of certain of the diamonds are in the D through G color high-purity diamonds to high temperature and range, and most require repolishing. high pressure removes their extrinsic color cen- This discovery evolved through years of sci- ters (i.e., those caused by the external forces that entific and technical work. The General Electric affected the diamonds after they formed in the Company is currently working with the jewelry earth’s mantle), so they display their optimum industry to develop practical means of identifi- intrinsic color (i.e., as they originally grew). (For cation and to educate the industry’s members more information on the cause of color in dia- about these processed diamonds. monds, see Field [1979] and Fritsch [1998].) Dr. T. Anthony and Dr. J. Casey The new process simulates the high pressures The General Electric Company

R EFERENCES Cambridge University Press, New York, pp. 23–47. Field J.E. (1979) The Properties of Diamond. Kirkley M.B., Gurney J.J., Levinson A.A. (1991) Academic Press, London. Age, origin, and emplacement of diamonds: Fritsch E. (1998) The nature of color in diamonds. In Scientific advances in the last decade. Gems & G. Harlow, Ed., The Nature of Diamonds, Gemology, Vol. 27, No. 1, pp. 2 – 25.

GEMS & GEMOLOGY FALL 1999 15 Figure 2. In several instances, GE-processed diamonds have been resubmitted to the GIA Gem Trade Laboratory, by individuals other than Pegasus representatives, with the “GE POL” inscription partially or completely removed. The database of information on the GE-processed diamonds we examined helped us detect these stones. In the photo on the left, the black appearance of the inscription has been removed, so that the “GE POL” is less visible. In the photo on the right, only small portions of the original inscription are still visible. Photomicrographs by Shane F. McClure; magnified 40×.

Laboratory for reports that would identify that these POL officials also have expressed support for GIA’s stones had undergone the GE process. This inscrip- efforts to develop additional means of identifying tion provides an immediate, practical means of recog- these diamonds. nition throughout the trade. In addition, GIA makes During the three-month period from early May the following comment on grading reports for all through July 1999, POL submitted 960 laser- such diamonds sent to the GIA Gem Trade inscribed diamonds to the GIA Gem Trade Lab- Laboratory by POL: “‘GE POL’ is present on the gir- oratory for reports. They were examined by experi- dle. Pegasus Overseas Limited (POL) states that this enced diamond grading, identification, and research diamond has been processed to improve its appear- staff at GIA’s offices in New York and Carlsbad. This ance by General Electric Company (GE).” GE and

Figure 4. The majority of these diamonds were fash- ioned in one of several fancy shapes (most frequently Figure 3. As illustrated here, most of the 858 GE marquise or pear shapes). (RB = round ; POL diamonds examined by the GIA Gem Trade MQ = marquise; OV = oval; PR = pear shape; Laboratory weighed less than 2.00 ct. EM = emerald)

16 SYMPOSIUM PROCEEDINGS ISSUE examination of a large group of known GE-processed diamonds—using both standard identification and grading techniques and, for some of the samples, advanced spectroscopic methods—gave us the unique opportunity to collect data on each diamond. This database has already proved of value by allowing us to recognize several of these diamonds that were subse- quently resubmitted to GIA but with the “GE POL” inscription partially or completely removed (figure 2). We have compiled certain demographic data on this group of GE POL diamonds. These are presented below, together with a description— and illustra- tions — of the various unusual internal features we Figure 5. Although the entire range of color grades observed. (from D through Z) were represented by the 858 GE- processed diamonds, most of these diamonds were in DEMOGRAPHIC DATA the colorless to near-colorless range (D through G). A Diamond Type. Diamonds are classified into four few were distinctly yellow, and fell in the color grades major categories—referred to as types Ia, Ib, IIa, and between O and Z. IIb—according to the presence or absence of the trace elements nitrogen or boron in their . These four categories of diamonds can be 28% of the samples, however, members of our grad- distinguished on the basis of ultraviolet transparency ing staff commented that the diamonds had a slightly and visible and infrared absorption spectra, among brownish or grayish color appearance when examined other characteristics. with the GEM Diamondlite™ or a gemological Whereas most near-colorless diamonds seen in the microscope. LKI president Leon Tempelsman recent- GIA Gem Trade Laboratory are type Ia, the vast ly commented that most of the diamonds are “top majority (99%) of the 858 GE POL diamonds were brown” before the process is applied, “with others type IIa. This was determined by their transparency to generally within the brown family” (Donahue, 1999). short-wave ultraviolet radiation and internal features, Of the 20% that fell below “near-colorless” on the such as crosshatched (“tatami”) strain patterns. color-grading scale, the largest portion (16% of the total group) were in the H–K range and 3% of the Size. The 858 diamonds in our sample ranged from total group were in the L–N range. The remainder 0.18 to 6.66 ct, with an average weight of 1.69 ct. were highly colored: Several were distinctly yellow, The majority weighed less than 2.00 ct (figure 3). two fell in the O–P range, two in the S–T range, two Note, however, that more than two-thirds (577) in the U–V range, and one in the Y–Z range. were 1.00 ct or more. Clarity. Consistent with the recent GE statement Shape. As illustrated in figure 4, 86% of these dia- that only high-clarity diamonds are chosen for pro- monds were cut in one of several “fancy” shapes— cessing, the majority of the GE POL diamonds (61%) mainly oval, marquise, and pear; most of the remain- were graded as being IF or VVS1. Most of the der were round brilliants. This is consistent with the remaining diamonds were distributed over VVS2, recent POL statement that they choose fancy shapes VS1, and VS2, with very few in the SI or I categories to obtain maximum value from the original rough (see figure 6). GE has confirmed that they select (“GE/LKI support disclosure . . . ,” 1999). high-quality stones for economic reasons ( J. Casey, pers. comm., 1999). Color. A high proportion (80%) of the GE-processed diamonds were described as “colorless” or “near-col- Ultraviolet Fluorescence. We found that 79% of orless” (from grades D through G; see figure 5). In the sample diamonds did not fluoresce to either long-

GEMS & GEMOLOGY FALL 1999 17 Figure 6. In general, the clarity of the sample diamonds Figure 7. The vast majority of the GE POL dia- was higher than normally would be expected in a general monds were either inert, or displayed very faint fluores- population of untreated colorless to near-colorless dia- cence, when exposed to long-wave ultraviolet radiation. monds, with 61% clarity graded as IF or VVS1.

INTERNAL FEATURES or short-wave ultraviolet radiation (figure 7 presents GIA’s examination of this large number of GE POL the results for long-wave UV). All of the remaining diamonds, in some cases at high (up to 200×) magni- 21% fluoresced blue, most with an intensity of very fication, revealed a variety of unusual internal features, faint to faint. This fluorescence reaction corresponds such as graining (figures 8 and 9) and inclusions (fig- to that of natural-color type IIa diamonds. ures 10–16). This section expands the photographic record of the visual features we observed in the GE- processed diamonds (see, e.g., Shigley et al., 1999, for an earlier report), to help members of the industry Figure 8. Graining was seen in a large number of GE- better distinguish such diamonds. Further work is in processed diamonds, and was one of the most prominent internal features of these stones. In some cases, the graining appeared whitish. In those diamonds where the graining was most intense, it seems to have contributed Figure 9. Also observed was brown graining, often a slightly hazy appearance to the overall stone. in a parallel banded pattern. Photomicrograph by Photomicrograph by John I. Koivula; magnified 35×. Shane F. McClure; magnified 40 ×.

18 SYMPOSIUM PROCEEDINGS ISSUE Figure 10. “Partially healed” cleavages were seen in a number of the GE POL samples. Some, as on the top left and right (magnified 13× and 18×, respec- tively), were similar in appearance to the “fingerprint” inclusions seen in some col- ored stones. Others had an unusual net- work-like appearance (bottom left, 18×), and one showed a partially healed cleav- age next to a granular/glassy cleavage similar to those described in figure 11 (bottom right, 32×). The first three pho- tomicrographs are by Shane Elen; the last is by Shane F. McClure.

progress to see if any—or a combination—of these a “whitish” appearance (figure 8), but occasionally visual features will provide conclusive evidence that a brown (figure 9). Graining also occurs in natural-color diamond has been exposed to GE’s or a similar high type IIa diamonds, though less frequently. pressure/high temperature procedure. The GIA grading staff noticed that 45% of the dia- monds displayed a slightly hazy appearance, especially Graining. Internal graining was seen in more than when viewed with the microscope at 10× magnifica- 75% of the GE POL diamonds. Our graders described tion. This may be due to graining or to some other the graining as very subtle to obvious, sometimes with light-scattering effect. Some of the diamonds did not

Figure 11. These cleavages appear gran- ular and reflective (i.e., more opaque) where they intersect the surface of the dia- mond, and are glassier and more translu- cent deeper within the separation. Top left—photomicrograph by John I. Koivula, magnified 40 ×; top right and bottom—photomicrographs by Shane F. McClure, magnified 40 × (top right and bottom left) and 33× (bottom right).

GEMS & GEMOLOGY FALL 1999 19 Figure 12. Each of these two partially healed cleav- Figure 13. This small inclusion surrounded by ages has a black area similar to one identified as a stress crack is an example of a feature seen in 103 graphite in another sample by Raman analysis. of the GE POL diamonds. Photomicrograph by Photomicrograph by Shane Elen; magnified 18×. Vincent Cracco; magnified 63×.

exhibit the “crisp,” transparent appearance typical of feather as graphite. Although cleavages are seen in natural untreated diamonds of similar color, clarity, some natural-color diamonds, we have not observed and type. this distinctive combination of features in surface- reaching cleavages or feathers in untreated near-color- Other Features Seen with Magnification. One or less diamonds. more of the following internal features were observed We noted included crystals that were surrounded in more than 30% of the samples: (1) surface-reaching by stress cracks (figure 13) in 103 samples. In a num- cleavages or feathers; and (2) included crystals, typical- ber of instances, we observed black patches of what ly with strain cracks or halos. also appeared to be graphite that were surrounded by Many of the surface-reaching cleavages appeared a translucent halo of tiny cracks radiating outward to be “partially healed”; that is, they resembled the (figure 14). As is the case with colored gems such as “fingerprint” inclusions that are seen in sapphire and ruby and sapphire, this radial cracking may be due to ruby (figure 10). In other cleavages, we noticed that the differences in thermal expansion of the inclusion close to the surface of the diamond they had a frosted and the host diamond during heating to high temper- or granular appearance; but deeper within the stone, ature. A circular cleavage forms around the inclusion they became glassier (figure 11). A black area was seen along the octahedral plane to relieve the resulting in some of the cleavages (figure 12); laser Raman stress within the diamond. microspectrometry identified the material in one Other inclusions consisted of one or more areas of

Figure 14. In most of the 103 samples that had solid inclusions surrounded by a stress crack, a black inner area (graphite) was surrounded by a brighter halo of outward radiating cracks (left; also evident here is the banded internal graining seen in a number of the GE POL diamonds). In some instances, there were several areas of graphite (right). Photomicrographs by John I. Koivula; magnified 40×.

20 SYMPOSIUM PROCEEDINGS ISSUE Figure 15. This inclusion contains several areas of Figure 16. Approximately 2% of the GE POL dia- what appear to be graphite, which are surrounded by monds exhibited unusual localized clouds and stringer- mesh-like zones of tiny cracks. Photomicrograph by like clouds. Photomicrograph by Shane F. McClure, John I. Koivula; magnified 40×. magnified 40×. what appeared to be graphite, surrounded by a mesh- Strain. Most of the GE POL diamonds exhibited like region of small cracks (figure 15). Again, these moderate-to-strong strain patterns (with crosshatched inclusions are unlike the included crystals or cracks [“tatami”], banded, and/or mottled arrangements; see that are typically seen in untreated near-colorless dia- figure 17) when examined between crossed polarizing monds. filters with a polariscope or gemological microscope. Some solid opaque inclusions did not exhibit these In the majority of these samples, the strain colors were radial cracks, but instead showed a melted or flow first- and second-order gray, blue, or orange. In com- structure. These may have been sulfide inclusions, parison, natural-color type IIa diamonds (which can which are seen in some natural diamonds. show similar strain patterns) usually exhibit less-intense Unusual localized clouds or cloud-like formations gray and brown interference colors (Lang, 1967). (which resembled the stringers sometimes seen in ruby) were present in approximately 2% of these dia- Discussion. Although the internal features noted here monds (figure 16). were usually subtle in appearance, the fact that they

Figure 17. When viewed with cross-polarized light, most of the GE POL diamonds exhibited banded (left) or crosshatched (center and right) strain patterns. Although some stones did reveal low-intensity interference colors (right), for the most part these diamonds showed moderate- to high-intensity interference colors (center and left), notably stronger than what is normally seen in untreated diamonds of similar color. Left and center photomicro- graphs by Shane F. McClure, magnified 20 ×; right photomicrograph by John I. Koivula; magnified 20 ×.

GEMS & GEMOLOGY FALL 1999 21 were observed in many of the 858 diamonds rein- GIA has undertaken a research program to better forced our belief that these features were (1) produced understand the techniques used to improve diamond in the diamonds as a result of this process, or (2) pre- color and also to learn what color changes can be existed in the kind of diamond selected for processing. produced and how extensive these modifications may In either case, we have rarely encountered the precise be. Results of these experiments will be published as features described here in the colorless to near-color- they become available. If we can reproduce some of less type IIa natural-color diamonds submitted over the same apparently characteristic features seen in the the years to our laboratory for grading reports. GE-processed diamonds examined to date, then such To date, we have not established any definitive features may provide a way to identify that the color identification features in GE POL diamonds that can of a diamond has been altered by this method. be detected by instrumental measurement (e.g., an However, it is also possible that further develop- absorption band produced in type IIa diamonds by ment work could minimize or eliminate some of the the GE process, which could be recorded by a spec- unusual internal features we have noted in these dia- trophotometer). Thus, visual features (especially the monds. It is likely that various organizations will con- use of a laser inscription on the girdle, as mentioned tinue to experiment with this type of treatment, and above) may offer the jeweler or gemologist the best that greater numbers of such diamonds will find their way at this time to recognize a GE POL diamond. way into the jewelry trade. Although every effort is being made to keep up with these new technologies, CONCLUSIONS we cannot guarantee that practical means will be For the most part, the 858 GE-processed diamonds found to recognize all of these diamonds. that formed the database reported here: (1) were type Acknowledgments: The authors thank Dr. Thomas IIa diamonds, (2) weighed an average of 1.69 ct, (3) Anthony and Dr. John Casey of GE Corporate Research were fashioned in fancy shapes, (4) fell in the D-to-G & Development, Schenectady, New York, for their assis- range of color grades, (5) had high clarity grades, and tance. Grading of the GE-processed diamonds was super- (6) did not fluoresce to UV radiation. In addition, vised by Bruce Lanzl and Ed Schwartz of the GIA Gem many of these diamonds showed a slightly hazy Trade Laboratory. appearance, often with noticeable internal graining— characteristics that were far more common in this group of diamonds than in a similar population of R EFERENCES natural-color diamonds. Other internal features Donahue P.J. (1999) Tempelsman: Consumers mixed on (cleavages, feathers, and solid inclusions) were also GE POL pricing. Web site http://www.professional- somewhat different in appearance from what we have jeweler.com, October 14. previously observed in untreated near-colorless dia- GE/LKI support disclosure and detection (1999) Interview monds. None of the GE-processed diamonds exhibit- with Leon Tempelsman in Rapaport Diamond Report, ed any evidence of “traditional” diamond treatments Vol. 22, No. 36, October 1, p. 23 et passim. (such as irradiation, fracture filling, surface coating, or Lang A.R. (1967) Causes of birefringence in diamond. laser drilling). On the basis of the diamonds we have Nature, January 21, p. 248 (figure 3 and section V). examined to date, we believe that it is possible to Shigley J., Moses T., McClure S., Van Daele M. (1999) detect at least a portion of these GE POL diamonds GIA reports on GE POL diamonds. Rapaport Diamond using standard gemological observation techniques Report, Vol. 22, No. 36, October 1, p. 1 et passim. and equipment.

22 SYMPOSIUM PROCEEDINGS ISSUE Special video presen- tation by De Beers Chairman Nicholas Oppenheimer.

GIA President Bill Boyajian delivers his welcoming remarks.

“Mr. GIA,” Richard T. Liddicoat.

Keynote speaker Peter Ueberroth proposes a “two at the top” system for businesses, where two individuals are able to function interchangeably as leaders.

Bill Boyajian, Symposium Co-Chair Alice Keller, Richard T. Liddicoat, GIA Executive Chairman Ralph Destino, and Symposium Co-Chair Kathryn Kimmel at the opening ceremony. Right: Mark Van Bockstael, Jean-Pierre Chalain, Karl Schmetzer, and Henry Hänni. Below: Gina Latendresse, Frank Mastoloni, Renee Latendresse, and Tom Chatham. At the “Meeting the World” Opening Reception.

Below: George Houston Right: GIA students Mithun Sacheti, and Al Isabelle Don Carli, Aurelie Gourg, and Woodill. Jean François Michiels, with Sue Johnson of GIA Education.

Right: Sheryl Cashmore, Isaac Dekalo, Nir Livnat, and Hadasa Dekalo.

Above: (Standing) Ezriel Rapaport, Martin Rapaport, Eli Izhakoff, Dafna Avigur, Chaim Even-Zohar, and Martin Hochbaum; (Seated) Rivka Rapaport, Norma Haas, Eli Haas, Rachel Above: Susan Jacques, Howard Herzog, and Lynn Ramsey. Rosin, and Lorri Dee Dukes.

24 SYMPOSIUM PROCEEDINGS ISSUE Right: Branding War Room moderator Whitney Sielaff and panelists Al Molina, Sheldon David, Liz Chatelain, Steven Lagos, Esther Fortunoff, Glenn Rothman, Scott Kay, and Eli Haas pose with former Marine Jackie “Spyder” Lockhart. Below: Garry Holloway argues his point at the Diamond Cut War Room.

Above: A capacity War Room audience listens expressively. Left (superimposed): Whitney Sielaff. Left: The Diamond Production panel. Left: Russell Shor asks a question from the floor.

Thomas Gübelin, during the Leadership Role of Michael DeBurgh adds his voice to the Brand- Fine Jewelry panel. ing War Room, as Daniel Sauer looks on. Left: The San Diego Natural History Museum, site of the “Nature of Diamonds” exhibit and the “Diamonds—The New Millennium” gala event. Below: Sheryl Cashmore, Elise Misiorowski, Hertz Below: Ben Hasenfeld, Sally Ehmke, Janowski and and Al Levinson. William Goldberg.

Above: James Rothwell, presi- dent of BHP Diamonds; Chuck Fipke, chairman and founder of Dia Met ; and Jim Eccott, president of Dia Met Minerals. Center: Symposium Manager Carol Moffatt; Directly above: Jim Eccott extends his welcome Performance by the Delta Drummers, a native to “Diamonds—The New Millennium.” dance troupe from the Northwest Territories. The Platinum Dancers. Below: Zlata and Jules Sauer; Dona Dirlam and John Sinkankas; and Kurt and Julia Nassau with Eric Wong.

Above: Laurie Hudson welcomes attendees to the Platinum Breakfast; Henry Kennedy presents his poster on “Publicity and Profits.” Directly above:“White Hot Platinum: The Metal of the Millennium.” Bill Boyajian and Tom Yonelunas update the trade on GE-processed diamonds.

Disclosure War Room: Mary Johnson, Cheryl Kremkow, George Rossman, Nanette Forester, Francesco Roberto, Roland Naftule, Cecilia Gardner, Esther Fortunoff, and Jeffrey Fischer.

George Harlow signs a copy of Nature of Diamonds for Kevin Castro.

The Alumni Internet Café was a popular attraction.

Carole Johnson and Cassidy Kennedy at the Gems & Gemology booth. Akoya, Tahitian, and South Sea pearl fashions were on display at “Of Future Days: A Pearl Fashion Preview.” Below: Cuixia Mi and Robert Wan. GIA students Holly Rice, Michelle Orlik, Fumiyo Ishida, and Jessica Bole at the Pearl Reception.

Above: Kathryn Kimmel, Gabrièl Mattice, Cindy Edelstein, and Cheryl Kremkow. Directly above: Runway models display the Above: Fran Mastoloni and Frank Mastoloni. elegance of pearls at the “Pearl Fashion Preview.” Directly above: Elvira Cornell and Varujan Arslanyan.

GEMS & GEMOLOGY FALL 1999 29 “Arte in Oro,” Symposium’s final social event, showcased jewelry by Italy’s leading designers.

Top left: Wendy Davis and Terri Ottaway at the “Arte in Oro” reception.

Contemporary Italian jewelry designers weave time-honored artistic traditions with innovative tech- niques to create the classics of tomorrow. Italy’s rich artistic heritage—extending from the Middle Ages through the Renaissance and the Baroque era—came to life at “Arte in Oro.” Above: Richard T. Liddicoat and E- Mae Bradbury enjoy the show. Below: Bill Boyajian, Vicenza Trade Fair Board President Giovanni Lasagna, Ralph Destino, Vicenza Trade Fair Board Executive Director Andrea Turcato, and soprano Pamela Hicks. Lower Left: Lynn Ramsey, Gary Gordon, and Italian Jewelry Guild President Robyn Lewis. Top left: Bill Boyajian with Maurice Tempelsman at the Closing Ceremony. Top right: Bert Krashes and Glenn Nord during the “Gemology Greats” session.

Rushworth Kidder urges gem and jewel- ry professionals to support ethics: “The Clockwise from middle left: Gemology greats Richard question is: Will we T. Liddicoat and Robert Crowningshield; Donald self-regulate, or have Tapscott describes how the Internet will change the regulation imposed way the jewelry industry does business; according to on us?” marketing expert Al Ries, “If you want to build a Noted economist Arthur Laffer powerful brand in the mind of consumers, you need presents his economic forecast for to contract your brand, not expand it.” Center: the new century. Maurice Tempelsman delivers the valedictory presentation.

32 SYMPOSIUM PROCEEDINGS ISSUE Abstracts of Feature Presentations Sessions 34 DIAMOND SOURCES Moderator: John I. Koivula Coordinators: Thomas Gelb and Maha DeMaggio 44 DIAMOND MANUFACTURING AND DISTRIBUTION Moderator: Thomas C. Yonelunas Coordinators: Kelly Shanley and Mark Van Daele 50 DIAMOND ECONOMICS Moderator: John M. King Coordinators: Scott Guhin and Jonathan Cohen 55 PERSPECTIVES ON THE DIAMOND MARKET Moderator: Alice S. Keller Coordinators: Marla Belbel and Daniel Gillen 60 COLORED STONE SOURCES Moderator: Brendan M. Laurs Coordinator: Jana Miyahira-Smith and Michael Wobby 68 COLORED STONE DISTRIBUTION AND MARKETING Moderator: Wendi M. Mayerson Coordinators: Philip York and Duncan Pay 73 PEARLS—THE SOURCES Moderator: Wendy F. Graham Coordinators: Karin Hurwit and Clara Zink 80 GEM IDENTIFICATION Moderator: Thomas M. Moses Coordinators: Dino DeGhionno and Troy Blodgett 88 TREATMENTS Moderator: Mary L. Johnson Coordinators: Ronnie Geurts and Stuart Overlin 97 TIMELESSNESS OF ANTIQUE AND ESTATE JEWELRY Moderator: Veronica Clark-Hudson Coordinators: Rebekah Nichols and Laura Small 103 ORIGINAL AND TREND-SETTING JEWELRY DESIGN Moderator: Susan B. Johnson Coordinators: Steve Workman and Corrine Perez-Garcia 107 RETAILING IN THE NEW MILLENNIUM Moderator: Harry W. Stubbert Coordinators: William Herberts and Roxana Lucas Diamond Sources

Changes and New Developments in Africa

John J. Gurney University of Cape Town Rondebosch, South Africa

NALYSIS OF HISTORICAL RECORDS (e.g., Current Production Levinson et al., 1992) reveals that Africa Africa currently produces 51.8 Mct (million carats) of A has been the source of about 70% by rough diamonds annually, or 46% of the world total weight of the global total of about 3.5 billion carats by weight, which rises to at least 72% by value. The (700 metric tons) of diamonds produced since antiq- jewel in the crown is Jwaneng (in Botswana), the uity, chiefly from primary kimberlite deposits but also most profitable mine in the world; Jwaneng’s 1997 with substantial high-value contributions from sec- production of 12.7 Mct represented 21% of world ondary sources, mainly alluvials. All the significant diamond production by value (Picton and Newton, kimberlite mines have been found within the stable 1998). Archean (>2.5 By [billion years]) cratonic nuclei of All the major De Beers mines, which produced the continent (Janse, 1996). The major alluvial fields 31.3 Mct in 1998, have projected lives of more than are on, or adjacent to, these geologic structures; are 10 years, and the most important of these — Jwaneng, derived from them by secondary surficial processes; Orapa, Venetia, Premier, and Finsch — are expected and have been a declining influence in recent times. to produce for more than 20 years. Orapa is sched- Moving away into peripheral Early Proterozoic rocks uled to double production by year 2000 to about 12.5 (between 1.6 and 2.5 By), there is much less chance Mct, and improved mining and recovery operations of finding an economic primary diamond source. are being implemented at Jwaneng, Venetia, Finsch, Current knowledge of diamond formation processes and in the Kimberley mines, as well as on the west in the earth’s mantle predicts that the likelihood of coast of southern Africa. finding economic kimberlite pipes off cratons is In the South Atlantic Ocean, De Beers Marine extremely low. This rules out large areas of the and Namdeb have a well-established, profitable min- African continent from hosting an as-yet-undiscov- ing operation that produces more than 500,000 high- ered primary diamond source, as can be seen from the value carats per year at present. Continuing explo- figure shown here (reprinted from Janse, 1996). ration, coupled with high-technology improvements Some geologically favorable terrain for primary to their mining operations, suggests increasing pro- diamond sources occurs within countries that are, to duction and a long life for this operation. Spectacular varying degrees, unsafe places to operate and particu- recent successes for the NamSSol underwater crawler larly unsafe to explore. Two of these, Angola and of Namco in Namibia, and the prospecting results of Zaire, are currently producing diamonds under con- Diamond Fields International, further expand the evi- ditions of civil war. Nevertheless, they have been dence for the existence of a major resource of gem important diamond producers from secondary diamonds in the sea off western southern Africa, par- deposits for many decades, and they have high poten- ticularly Namibia. This will more than offset the tial for further discoveries of new primary deposits. depletion of high-level beach deposits and river allu- Indeed, De Beers announced four new discoveries in vials on land. Lunda Norte Province, Angola, during 1998. Extensive exploration in certain other cratonic sources, such as North Lesotho, indicates that the dis- covery of a major kimberlite pipe is unlikely. E-mail address: [email protected]

34 SYMPOSIUM PROCEEDINGS ISSUE To date, economic kimberlites have been found only on those parts of cratons known as archons. This map of Africa shows the distribution of cratons (outlined in green) and archons (outlined in red). Solid red dots and red letters are pipes and dikes, green striped areas and green letters are alluvial deposits (note that some areas contain both green stripes and red dots), and the red-striped area marks the beach and off-shore deposits in Namibia and Namaqualand. Key to large, open red letters: B–Bangweulo archon; CA–Central African craton; G–Gabon archon; KA–Kalahari archon; LK–Lunda- Kasai archon; M–Man archon; R–Reguibat archon; SA–South African craton; T–Tanzania archon; WA–West African craton. Key to solid red and green letters: A–Akwatia/Birim alluvials; B–Banankoro alluvials and pipes; Bf–Buffels River alluvials; Cb–Carnot/Berbérati alluvials; Cu–Cuango alluvials and pipes; Do–Dokolwayo pipe; F –Finsch pipe; G–Gope pipe; J–Jwaneng pipe; Ja–Jagersfontein pipe; K–Koidu pipes and dikes; Kb–Kimberley pipes (5); Ko–Koffiefontein pipe; L–Letlhakane pipe; Le–Letseng pipe; Li–Lichtenburg alluvials; Lo–Lower Orange River alluvials; Lu–Lunda pipes and alluvials; M–Mitzic kimberlites; Mb–Mbuji-Mayi pipes, eluvials and alluvials; Mo –Mouka Ouadda alluvials; Mw –Mwadui pipe; O –Orapa pipe; P–Premier pipe; R–River Ranch pipe; Rg –Reggane alluvials; S–Séguéla alluvials and dikes; St–star fissure; T–Tortiya alluvials; Ts–Tshikapa alluvials; V–Venetia pipe; Vo–Vaal/Orange Rivers alluvials; Ye–Yengema alluvials. (Reprinted with permission from Janse, 1996.) Future Production prospecting methods applied by the growing body of Reviewing this situation, it appears that African dia- technologically astute exploration companies. mond production will increase to more than 60 Mct In this context, the early-stage grass roots prospect- per year in the foreseeable future. ing activities of Rex Diamonds and Ashton/Diamet in In the medium term (5 –12 years), additional pro- Mauritania are examples of the sort of exploration duction may come from the development of mining programs that could contribute to keeping Africa at operations on some of the many known kimberlites the forefront of diamond production in the longer in Angola, following the model of Catoca (66 ha, term. with 1.17 ct/tonne; Gordon, 1997). Camafuca- In any event, Africa’s premier position is assured Camazambo (160 ha) and Camatue (12 ha) are two well into the next millennium. It has been indepen- good examples among many. Gope 25 in Botswana dently estimated that by 2005 African production will may be developed by De Beers/Falconbridge. A be 63 Mct out of a world total of 119 million carats, number of small potential mines are in the feasibili- representing 66% of world value at an average price ty stage at present (e.g., Klipspringer, The Oaks, of US$97/ct and a total value of $6.1 billion (Picton Palmietgat, Crown mine, and Voorspoed in South and Newton, 1998). African production by country Africa; and Tshwapong in Botswana). These reflect in 2005 is estimated to be: Botswana 26 Mct, South a growing interest in the mining of smaller Africa 14 Mct, DR Congo 14 Mct, Angola 5 Mct, deposits, especially where—as with Marsfontein Namibia 2 Mct, rest of Africa 2 Mct. (SouthernEra/De Beers)—they have high ore grades. Marsfontein (0.4 ha) produced 1 Mct in its first year R EFERENCES of operation. Gordon C. (1997) Angola’s first kimberlite mine. Diamond The Kalahari craton (again, see figure) is an excel- International, No. 47 (May/June), pp. 67, 68, 71, 72. lent example of a comprehensively explored craton Janse A.J.A. (1996) A history of diamond sources in Africa: where significant discoveries (Finsch, Orapa, Part II. Gems & Gemology, Vol. 32, No. 1, pp. 2–30. Jwaneng, Venetia, Klipspringer, Marsfontein) have Levinson A.A., Gurney J.J., Kirkley M.B. (1992) Diamond been made in each of the last four decades. It is rea- sources and production: Past, present and future. sonable to expect further discoveries, especially in Gems & Gemology, Vol. 28, No. 4, pp. 234–254. areas with extensive recent geologic cover where hid- Picton J., Newton C. (1998). De Beers/Centenary and the den ore bodies have proved elusive in the past. These Global Diamond Industry. Standard Equities, 104 pp. will be accomplished by creative use of modern [www.equities.co.za].

36 SYMPOSIUM PROCEEDINGS ISSUE Diamonds from Australia

A. J. A. (Bram) Janse Consultant Geologist Perth, Australia

HE DISCOVERY of the Argyle diamond much olivine); as is the case with kimberlite, they also deposit in 1979, and its exploitation since contain alkalis, mainly potassium and sodium, in T1986, brought extensive changes to the dia- amounts much higher than in other ultrabasic-to-basic mond industry from four key perspectives: geological, rocks. In most alkaline rocks, sodium is predominant mineralogical, gemological, and commercial. In 1980, over potassium, but the reverse is true for kimberlite for the first time in the known history of diamond and lamproite. In 1980, however, no one had expected mining, economic quantities of diamonds were found to find economic quantities of diamonds in a nonkim- in an Early Proterozoic mobile belt instead of, as for berlitic rock, so at first exploration geologists referred all previous discoveries, the Archean core of a craton. to the Argyle diamond host rock as “kimberlitic.” Until 1980, it was thought that diamondiferous kim- berlites (and, by inference, any other primary host The Argyle Deposit rock for diamonds) occurred only in the interior of The 50 ha (124 acres) Argyle pipe produces mainly old cratons—that is, parts of the earth’s crust older small (average size 12 points), predominantly brown than 1,600 million years (My) that are stable, rigid, diamonds of irregular shape; only 5% are true gem and have not been deformed (known as Clifford’s quality. Mining began in 1985, with almost 30 Mct Rule; Clifford, 1966). Janse (1994) elaborated on (million carats) produced the following year (see Clifford’s Rule by stating that economic kimberlites table). The great commercial problem of how to occurred only on an Archon—that part of a craton absorb this large volume of diamonds into the world that is underlain by basement rock of Archean age, markets was the reason the majority owners of the older than 2,500 My. In the Kimberley region of Argyle Diamond Mines Joint Venture (CRA [now (see figure), the economic Argyle Rio Tinto] about 57% and Ashton Mining 38%) lamproite and the near-economic lamproites at negotiated two five-year sales contracts with the De Ellendale occur not in a stable Archean block, but Beers CSO that covered mid-1986 to mid-1996. rather in the Early Proterozoic Halls Creek and King From the beginning of production, the 5% minority Leopold mobile belts, which are older than 1,800 owner, Northern Mining (later the Western Australian My, and surround the stable Archean Kimberley Diamond Trust, which was absorbed into Argyle Plateau block. Diamond Mines in early 1989) sold its share directly to For more than 100 years, up until 1980, it was the market. Since mid-1996, all Argyle diamonds have thought that the only primary host rock for diamonds been sold to the market outside of the CSO. was kimberlite (excluding a few diamonds of meteorit- Eventually it was discovered that about 40% of the ic origin and their problematic occurrence in some 95% non-gem diamonds at Argyle could be cut eco- rocks of dubious origin). However, the diamonds at nomically in India into inexpensive, low-quality Argyle occur in lamproite, a rare rock that had been stones. Thus, the production from the Argyle mine known as an academic curiosity since it was named by became 5% gem, 40% near-gem, and 55% industrial Swiss Professor Paul Niggli in 1923. Like kimberlite, grade. Approximately 700,000 people, about 25% of lamproite forms breccias that range from bluish green whom work full time, are currently involved in the to pale yellow. These breccias are also ultrabasic-to- Indian cutting industry and cut most of the Argyle basic rocks (i.e., poor in silica and thus containing mine production (Sevdermish et al., 1998).

GEMS & GEMOLOGY FALL 1999 37 Diamonds have been discov- ered in several areas of Australia— in lamproites, kimberlites, and alluvial deposits. Most of the deposits, including the high- ly productive Argyle mine, are located in Western Australia, in what is known as the Kimberley region.

Argyle, with its associated alluvials, is the only straight and periodically stable coast of South Africa major Australian diamond producer. For eight years, and Namibia, the coast of the Kimberley region and from 1988 to 1995, Bow River Diamond Mines adjoining Northern Territory is flat and indented from (owned by Normany-Poseidon) mined a small alluvial ever-changing river courses. Consequently, it is deposit in Lower Limestone Creek, 20 km down- unlikely that large concentrations of diamonds exist stream from the Argyle pipe, and produced roughly 7 offshore along Australia’s northwest coast. Mct (again, see table) of a quality three times higher In contrast to the large Argyle lamproite, which is than that of the Argyle diamonds: $25 per carat com- located in the Early Proterozoic Halls Creek mobile pared to $8 per carat. Thus, the great majority of belt, small kimberlite dikes and pipes have been found Australian diamonds are produced by Argyle. Present in the northern part of the Archean Kimberley ore reserves will last until the end of 2003. Deepening Plateau. Striker Resources is presently evaluating the of the open pit now in progress has assured that the 4-km-long Bulgurri kimberlite dike system and the mine will remain active until the end of 2005, while a four small Ashmore pipes. Both of these properties planned additional underground operation may contain sharp-edged, flat-faced, colorless, inclusion-free extend life until 2009. octahedra and have promising economic potential. The 20 ha (49 acres) Aries kimberlite pipe, the Other Deposits in Western Australia largest kimberlite pipe discovered in Australia so far, Diamonds have been found in stream sediments of the was found in the more interior part of the Kimberley Ord River as far as Kununurra, up to 150 km down- Plateau. (Although the pipe is large and the diamonds stream from Argyle, and some have reached the sea. found to date have been good quality—mainly color- However, it is not clear where the paleo-Ord River less dodecahedra, reportedly valued at $150 per that would have drained the Argyle pipe during the carat—the ore grade is too low to make it an eco- Tertiary period had its outlet. Compared to the nomic deposit.)

38 SYMPOSIUM PROCEEDINGS ISSUE Annual diamond production of Australia, 1983–1998.

Australia, as a % Argylea Bow Rivera of world production Total Year Alluvial Alluvial Pipe Pipe Total Alluvial AlluvialAustralian By weight By value production grade production grade production production grade production (Mct)b (ct/tonne) (Mct) (ct/tonne) (Mct) (Mct) (ct/tonne) (Mct)

1983 6.2 5.8 NPc NP 6.2 NP NP 6.2 11 2 1984 5.7 3.9 NP NP 5.7 NP NP 5.7 9 2 1985 5.4 4.7 1.7d 5.0 7.1 NP NP 7.1 11 2 1986 NP NP 29.2 9.1 29.2 NP NP 29.2 32 6 1987 NP NP 30.3 8.7 30.3 NP NP 30.3 33 6 1988 NP NP 34.6 7.3 34.6 0.5 0.3 35.1 35 7 1989 1.6 1.4 32.8 6.7 34.4 0.7 0.3 35.1 33 6 1990 2.1 1.1 31.7 6.1 33.8 0.9 0.3 34.7 32 6 1991 1.6 1.2 33.4 5.6 35.0 1.0 0.3 36.0 35 7 1992 2.4 0.7 36.6 5.4 39.0 1.2 0.3 40.2 40 6 1993 2.5 0.7 38.4 5.8 40.9 1.0 0.3 41.9 41 6 1994 3.1 0.7 39.7 5.0 42.8 1.0 0.2 43.8 41 6 1995 2.4 0.5 37.5 4.2 39.9 0.5 0.2 40.4 37 5 1996 2.6 0.4 39.4 3.9 42.0 NP NP 42.0 35 5 1997 1.6 0.3 38.6 3.7 40.2 NP NP 40.2 35 4 1998 1.9 0.3 40.0 3.5 40.9 NP NP 40.9 35 4 aData from annual reports of Ashton Mining Ltd. and from Bow River Mines management. bMct = Millions of carats. cNP = No production reported for the year from this source. dProduction at the Argyle pipe began in December 1985; 1.7 Mct was one month’s production.

Other Diamond Producing Areas of Australia 1994, and brought into production in February 1999. Alluvial diamonds were found as early as 1851 in As is the case with the Ekati mine in Canada’s southeastern Australia in a region that is far outside Northwest Territories, Merlin draws ore from four to any cratonic parts of the crust. In fact, it is in a seven small kimberlite pipes and produces diamonds Paleozoic orogenic belt. The origin of these diamonds of very good quality, reportedly $130 per carat. In the is still an enigma. The largest concentration of dia- first batch produced, a good-quality diamond of monds was found near Copeton in New South 14.76 ct was recovered, and several stones of this size Wales. Attempts to establish an economic production and quality have been found since. from this and other smaller deposits in the region were made in the last century, and again in the 1990s, REFERENCES but without commercial success. The Copeton dia- Clifford T.N. (1966) Tectono-metallogenic units and met- mond crystals are often complexly twinned; the allogenic provinces of Africa. Earth and Planetary Science resulting “naats” (seams) are often difficult to see and Letters, Vol. 1, pp. 421–434. cause problems in cutting. Consequently, the term Janse A.J.A. (1994) Is Clifford’s Rule still valid? Affirmative cannifare (“cannot make”) is often applied to the examples from around the world. In H.O.A. Meyer and O. Copeton stones. Total alluvial production from the Leonardos, Eds., Diamonds: Characterization, Genesis and 1860s to the 1920s amounted to about 300,000 carats. Exploration, Vol. 2, Proceedings of the Fifth International Small deposits of alluvial diamonds, and kimberlites Kimberlite Conference, Araxá, Brazil, 1991, Companhia with a trace of diamonds, have been found in many de Pesquisa de Recursos Minerais (CPRM), Special other places throughout Australia, but none has Publication 1/B, Rio de Janeiro, pp. 215–235. proved economically significant. Sevdermish M., Miciak A.R., Levinson A.A. (1998) The At present, the only producing diamond mine rise to prominence of the modern diamond cutting other than Argyle is Merlin, located in the Northern industry in India. Gems & Gemology, Vol. 34, No. 1, Territory. It was discovered by Ashton Mining in pp. 4–23.

GEMS & GEMOLOGY FALL 1999 39 Canadian Diamond Production: A Government Perspective

Douglas Paget Canada Department of Indian Affairs and Northern Development Hull, Quebec, Canada

HE ANNOUNCEMENT earlier this decade Few took Canadian geologist Charles Fipke very that diamonds had been found in the seriously in the early 1980s, when he first started TNorthwest Territories presented a whole new prospecting for diamonds in this cold, barren region. challenge to the Canadian government. For the most But like the adventurers who opened up the part, provincial governments have jurisdiction over nat- Klondike a century before and became millionaires, ural resources in Canada. However, the three northern Fipke eventually became very very wealthy following territorial governments — the Yukon, the Northwest his 1991 discovery of a number of kimberlite pipes in Territories, and the new territory of Nunavut — do not. the area near Lac de Gras. Consequently, the government of Canada has been It is not the purpose of this presentation to dwell deeply immersed in the development of this country’s on the history of the discovery of diamond deposits in first diamond mine and its new diamond industry. Early Canada, as this topic has been discussed in great detail research revealed important issues—such as the need elsewhere. Suffice it to say that during the period for environmental reviews, the political climate in the 1991–1998, more than 250 kimberlite occurrences north, and the structure of the northern mining were discovered in the Slave Geological Province in industry — that were different from those in other dia- the Northwest Territories, and exploration for addi- mond-producing countries. Therefore, the government tional diamond deposits continues unabated. had few precedents to follow in its mandate to ensure Although diamond-bearing kimberlite pipes have the smooth development of this complex industry. been found in several other provinces and territories Since fall 1998, however, the first Canadian dia- (i.e., Quebec, Ontario, Saskatchewan, Alberta, British mond mine — the Ekati mine — has been in produc- Columbia, and Nunavut), the principal cluster of eco- tion, and it is likely that additional mines will be devel- nomically viable pipes found to date occurs in the Lac oped. As a result, Canada could soon be producing de Gras area, the site of the Ekati diamond mine, more than 10% of the world’s diamonds by value. This which is owned by BHP Diamonds Inc. (51%), Dia review looks at the Canadian government’s response to Met Minerals Ltd. (29%), Charles E. Fipke (10%), and this new industry, including government attempts to Stewart L. Blusson (10%). attract value-added operations to the Northwest The Ekati mine alone has a resource of 66 million Territories. tonnes at 1.07 ct/t, with an average value of US$100 per carat (see “Diamond production starts at Canada’s Canada’s North and Its Diamond Mines Ekati mine,” Gem News, Winter 1998 Gems & Canada’s Arctic region is an enigma to most peo- Gemology, pp. 290–292, for further details). From ple — including the majority of Canadians. It makes October 1998 to June 1999, the mine produced in up one-third of the country’s landmass, but it has excess of 1 Mct (million carats). It is expected to pro- only a tiny fraction (<100,000 people, or 0.003%) of duce about 3 to 4 Mct a year for at least 17 years. its population. Only 800 km south of the North Pole And, as they say in the Arctic, that’s only the tip of at its northernmost point, it stretches across three the iceberg. Other diamond projects in the evaluation time zones and touches two oceans (see map). Con- or development stage include Diavik, Snap Lake, and sequently, it is a difficult and expensive area both to reach and to work. E-mail address: [email protected]

40 SYMPOSIUM PROCEEDINGS ISSUE This map shows the provinces and territories (Yukon, Northwest Territories, and Nunavut) of Canada. The Ekati dia- mond mine, as well as most of the potentially economic kimberlites found to this point, are in the Slave Geological Province.

Kennady Lake in the Northwest Territories, and Arctic region is aboriginal. Many of the First Nations Jericho in Nunavut. At least six different companies located in the Northwest Territories are actively are involved. involved in land claim settlements and self-govern- ment agreements, which give them decision-making Exploration and Mining Differences powers over land use and resource development. Diamond exploration and mining in Canada are very The three northern territories enjoy a special rela- different from most other countries. Not only is the tionship with the government of Canada, a relation- climate harsh (winter temperatures of −40ºC are ship managed by the Department of Indian Affairs common), but there is also very little infrastructure, so and Northern Development (DIAND). DIAND is a all materials are moved to the projects via winter ice key player in the North. Three of its key objectives roads. In addition, glaciers have resulted in diamond are to: indicator minerals being dispersed for great distances, the kimberlites being covered with glacial deposits • Foster the political development of (e.g., till) in some places, and in most cases the occur- the North rence of kimberlites under lakes (because the glaciers • Promote sustainable development preferentially eroded the kimberlite pipes, resulting in • Strengthen Canada’s international presence depressions that are now filled with water). Last, most among circumpolar nations of the pipes found to date in the Northwest Territories have a small surface expression—typically Although these complex issues will not be dis- less than 2 ha (~ 5 acres)—which makes them more cussed here, one recent event—the establishment of difficult to locate (thus requiring modern geophysical the territory of Nunavut—deserves mention. It exploration methods). By comparison, for example, demonstrates the approach Canada is taking with the Orapa mine in Botswana extends over 100 ha. If respect to the political and economic development of Canadian diamonds are more difficult to reach, they the North. are definitely worth the effort because of their high quality, with up to 30% gems in the pipes slated for Nunavut production thus far. On April 1, 1999, the map of Canada was redrawn with the creation of Nunavut— a vast new territory in Business Climate the Eastern Arctic (again, see figure), which is populat- Doing business in Canada’s North is also different ed by about 25,000 people of whom 85% are Inuit. In from anywhere else in the country, and perhaps the partnership with their non-aboriginal neighbors, they world. A large proportion of the population in the will run a public government for all of the Nunavut

GEMS & GEMOLOGY FALL 1999 41 residents, one that will clearly reflect the cultural • Six land leases that provide an enforcement makeup of the territory. Inuktitut, the aboriginal lan- mechanism for certain obligations in the guage, will be the working language of the govern- agreement ment, and many of its programs and policies will Another innovative aspect of this agreement was reflect their traditional knowledge and customs. the creation of an independent monitoring agency to Like all Canadians, Northerners want and need ensure compliance by Ekati Diamond Mines and the jobs and business opportunities. They want and need governments in meeting their obligations related to an economy that will support them and their chil- environmental management and reporting activities. dren. They want and need sustainable development Aboriginal people play a key role in the agency, and that addresses both the economic and cultural health appointed four of the seven members. of aboriginal communities, where the population Today, the Ekati mine is up and running. About growth is double the Canadian average. However, 700 people are employed, and a stream of social ben- they are not prepared to risk the health of the envi- efits is flowing into the North at an increasing pace. ronment, their own physical health, or their cen- turies-old traditions for the sake of a mine that may Diamond Manufacturing not last longer than 20 years. This notion of sustain- Through an agreement between Ekati Diamond able, responsible development is more and more Mines and the government of the Northwest shaping the government’s view of develop- Territories, roughly 3% by weight, but 10% by value, ment in the North. of rough diamonds from the Ekati mine are available Environmental Assessment and the for local manufacturing in the North. The territorial Engagement of First Nations government, backed by the federal government, is finding ways to establish local cutting and polishing The proposal to develop the Ekati diamond mine trig- operations. For example, the government of the gered the most rigorous environmental assessment of a Northwest Territories has attracted Sirius Diamonds mining project ever in Canada. Working together as Ltd. of Victoria, British Columbia, by providing partners, the governments, mining industry, aboriginal testing equipment and other assistance. Other manu- communities, and public built on the findings of a facturers are expected to follow. Jewelry making is public panel to negotiate a mine-specific regulatory the next logical step in the development of value- regime and benefits package that meets the needs of added diamond industries in Canada’s North, and Northerners in general, and aboriginal people in par- ways to create other such opportunities are being ticular. The final arrangement included: examined. • An environmental agreement between BHP Diamonds Inc. and both the federal Conclusion and territorial governments This snapshot of Canada’s diamond industry is, admit- tedly, intended to stimulate interest in mining oppor- • Impact and benefit agreements that commit tunities in Canada. When you consider the North’s BHP Diamonds Inc. to provide jobs, busi- immense diamond potential, Canada’s mineral rights ness opportunities, training, and annual disposition and tenure system (which promotes cash payments to the communities over the exploration and mineral development), a reasonable life of the mine tax regime, as well as the technical expertise available, • A socioeconomic agreement, to ensure that you cannot help but conclude that Canada’s North is the benefits of diamond development a good place to do business. With this excellent extend to all residents of Canada’s North exploration and mining environment, it is inevitable • A water license, an action that is common that Canada will play a major role in the diamond to every mine industry in the next millennium.

42 SYMPOSIUM PROCEEDINGS ISSUE Russian Diamond Sources

N.V. Sobolev Institute of Mineralogy and Petrography Russian Academy of Sciences, Siberian Branch, Novosibirsk, Russia

HE HISTORY OF DIAMOND production In the northern part of European Russia, the in Russia began in 1829 with the discovery Arkhangelsk diamondiferous province on the East Tof alluvial diamond deposits in the northern European (Russian) craton is being evaluated for its Ural Mountains (see location “U” on the inset map). economic potential (see location “A” on the inset However, it was not until 1954 that the first kimber- map). Since this province was discovered in the late lites were discovered, in the Siberian craton of the 1970s, several high-grade kimberlite pipes have been Republic of Sakha (formerly Yakutia), as predicted by identified. It is likely that the Lomonossov kimberlite Professor Vladimir S. Sobolev in the late 1930s. pipe will be the first to be developed, with production Professor Sobolev’s prediction was based on the many planned to begin early in the next century. geologic similarities between the South African and the Siberian cratons, including past magmatic activities. The vast Siberian craton, in which more than 800 On the inset map of Russia, the "U" represents the kimberlite bodies have been identified to date, covers location of the first discovery of alluvial diamonds in the more than 2,000,000 km2. The boundaries of the Ural Mountains and “A” represents the Arkhangelsk Siberian craton are shown on the main map, as are kimberlite field, which was first discovered in the 1970s major kimberlite fields 1, 2, and 3, in which at least 10 and is expected to begin production early in the next high-grade kimberlite pipes are currently being mined. century. The most important diamond-producing areas Also indicated on the map (as no. 4) is the new Nakyn in the Sakha region of Siberia are shown on the larger kimberlite field, which contains the recently discov- map. In Sakha, the Siberian craton hosts the following ered (in 1994) Botuobinskaya kimberlite. diamondiferous kimberlite fields: (1) Malaya Approximately 98% of all diamonds mined in Botuobiya, (2) Alakit, (3) Daldyn, (4) Nakyn, and Russia come from Sakha, with the remaining 2% (5) Muna. The location of the Anabar placers of the recovered from placers in the Ural Mountains. Ebelyakh River is also shown (6). Within Sakha, 90% of the diamonds are mined from several Devonian age (345–362 My) kimberlite pipes. The main ones are Mir, Internationalaya, Aikhal, Sytykanskaya, Udachnaya, Jubileynaya, and Botuo- binskaya. Ten percent of the production is from the Anabar placers at the Ebelyakh River. Several pipes in the Muna field (no. 5 in the figure) are being prepared for mining early in the next millennium. Whereas open-pit mining has been the mainstay of the Russian diamond industry since its inception, plans are being made for the first underground mine, at the Internationalaya pipe, and another later at the Mir pipe; both are in the Malaya Botuobiya craton (see map).

E-mail address: [email protected]

GEMS & GEMOLOGY FALL 1999 43 Diamond Manufacturing

The New York Diamond Market

Hertz Hasenfeld Hasenfeld-Stein New York

ew York’s Position in the largest concentration of retail jewelers in the world— Current World Diamond Market numbering some 40,000—from major chain stores to N From its beginnings in the late 1800s, New high-end specialty retailers. New York also distributes York’s diamond industry has continued to grow and to wholesalers and retailers worldwide. prosper as one of the most important of the world’s Having reached more than $22 billion in retail cutting centers. Supported by skilled craftsmen trained jewelry sales in 1998, the U.S. jewelry market in Europe, augmented by a well-apprenticed labor anchors New York as a significant player. With over force, compelled by high wage and labor standards in 60% of the typical retailer’s annual sales being in dia- the New World, and fueled by aggressive product monds or diamond jewelry, the U.S. retail market marketing, New York gained its foothold by supply- represented 36% of world diamond sales by value (see ing larger, well-made diamonds to the growing figure) and at least half of the world’s total diamond American—and international—consumer market. consumption by weight. The types of diamond goods Today, with some 400 skilled cutters and approxi- produced in New York accounted for over half of mately 2,000 diamond merchants—concentrated in a U.S. total consumption by weight. single square mile in midtown Manhattan—New Because of the significance of the U.S. retail mar- York continues in a dominant international role. Yet ket, the U.S. consumer drives diamond production it faces critical decisions as to how it will maintain trends. Today’s consumer seeks higher-quality center that role in the future. stones, and there is an increasing awareness and New York shares the title of “World Cutting demand for “Ideal” and premium-cut diamonds. The Center” with Belgium, Israel, Asia (including the use of laboratory certificates in retail selling is increas- emerging China), and, of course, India. When these ing, with more emphasis being placed on cut quality. five centers are measured in terms of number of cut- ters, New York is by far the smallest. New York’s Challenges Facing the position, however, is maintained by the types of New York Diamond Market goods it cuts, the quality of the cutting, and the sig- To maintain its current status in the world diamond nificance of the primary market it serves—the U.S. market, New York must address the following chal- retail jewelry industry. lenges: From the onset, New York has had higher labor 1. Spot shortages costs than other cutting centers (with the possible 2. Labor costs exception of Belgium), so its production had to be in goods appropriate to this situation. New York gained 3. Globalization its reputation by cutting medium-to-larger goods with 4. Competition for high-end cutting fine make, and such goods remain its strength today— Spot Shortages. The polished diamond market of 1999 well-cut rounds and fancies, usually 0.50 ct and above. has proved to be an interesting conundrum. New York is also an important trading center. In Weakness in demand for small sizes (i.e., up to 1 ct) is 1998, over 97% of American diamond imports came counterbalanced by extreme shortages in the 1.25+ ct through New York. The more than $6 billion in annual imports are distributed to other cutters, to wholesalers who are not sightholders, and to the E-mail address: [email protected]

44 SYMPOSIUM PROCEEDINGS ISSUE categories. Certain sizes, such as 1.70s and 2.50s, have virtually vanished. The underlying reason for this situation is that the supply line for much of the “outside” rough in recent years, which originated in Russia and Angola, has vir- tually disappeared. Most of the rough in today’s mar- ket comes from traditional (and legal) channels. De Beers has regained firm control of the rough markets, especially in the larger sizes. In fact, at the most recent sights, premiums on boxes of larger-size rough were 8%–15, numbers that were unheard of in recent years. New York, as the first line of defense for the retail jeweler, must continue to procure the difficult sizes. Otherwise, jewelers will turn to Antwerp and Israel in hopes of finding such goods. The U.S. dominates world diamond sales. For 1998, Labor Costs. Over the past three decades, Israel and it represented 36% by value. India have emerged as important cutting centers. At the same time, we have seen centers such as Hong Kong and Thailand fade almost as quickly as they ing and ordering. U.S. retailers also require credit. emerged. While the cheapest goods will continue to Fortunately, the New York Diamond Market is in a be cut in various developing nations around the globe, strong financial position. New York must focus its industry on cutting goods worthy of the talent and expertise of its labor force. Competition for High-End Cutting. The diamond New York is also augmenting human labor with manufacturing technology available to New York is automation. Automatic diamond cutting has evolved also available to the rest of the world. As skill and dramatically since the first machines were used in Israel experience increase in other cutting centers, New in the 1970s. Today, a machine is capable of cutting a York has seen increasing competition from those cen- diamond—with the exception of the star facets —with ters for the larger, better rough. In response, New perfect polish and symmetry and with no additional York must conscientiously protect its role in fine weight loss, compared to human labor. Automation make by providing more premium-cut goods for the ensures better consistency, an attribute demanded in American market, along with the diamond-grading branded diamonds. It also helps address some of the reports that authenticate their cutting quality. consumer issues regarding diamond cut, the last quality factor to become quantifiable. Concluding Remarks As a relatively small and tight center, New York Globalization. With today’s telecommunications, maintains the ability to adjust to consumer trends and overnight deliveries, and international travel facilities, service special requests. Because of their depth of skill New York is no longer insulated by the Atlantic. Not and experience, New York cutters can shift produc- only are diamonds supplied to the American market tion to different shapes, sizes, and features as the mar- by other cutting centers, but New York also services ket demands. In addition, New York can respond to other international markets. New York has estab- custom orders and recutting requests. Although it is lished strategic international links for the American impossible to curtail the developing skills and retailer through brokers and partnerships in overseas resources of other centers, a keen awareness and sen- centers. Diamond trading in the U.S. now requires sitivity to the needs of the American retailer will help memo service and next-day delivery. To overcome protect New York’s position as the diamond supplier time zones, progressive retailers look for electronic to this important constituency. New York is indeed access to existing inventories, including on-line pric- poised for the new millennium.

GEMS & GEMOLOGY FALL 1999 45 The Antwerp Diamond Sector

Marcel Pruwer International Economic Strategy Consulting Antwerp, Belgium

ith a yearly turnover of around $20 billion, of profit margins, treatment and disclosure, branding, Antwerp handles more than 80% of the world’s unprofessional conduct and ethical standards, corpo- Wrough diamonds, and half of its polished dia- rate transparency, the discount syndrome, credit and monds. It is the undeniable capital of the world’s dia- memo excesses, and far too little creativity in style, mond trade, continuing a tradition of cutting, trading, design, and merchandising. Antwerp is very aware of and financing that started in Bruges over 500 years current threats to the global diamond industry. ago. Antwerp’s diamond volume is a reflection of its Accordingly, Antwerp is now re-inventing itself with key role in the diamond pipeline. There are well over vitality, gaining new insight, vision, and clients, and 1,000 active diamond manufacturing and trading developing new business strategies. companies in Antwerp, some of which are the largest Today, Antwerp is positioned perfectly to be the in the world. The Antwerp sector accommodates a partner of choice for diamond dealers, distributors, global business comprising 70 million pieces of dia- manufacturing jewelers, retailers, other cutting cen- mond jewelry at an average of $750 per piece. This ters, and downstream stakeholders around the world. amounts to a total retail value of $50 billion and a The city benefits from the presence of the financial wholesale polished diamond value of $12 billion. pillars of the diamond industry, Antwerp Diamond For centuries, diamonds and the diamond indus- Bank and ABN-AMRO. Indicative of Antwerp’s try were clouded in mystery, myth, and the magic strength and position, as well as the quality of its released by artisan gem cutters. Today, the diamond infrastructure, is the fact that it is headquarters to the trade is driven by computers, lasers, leading-edge sci- World Federation of Diamond Bourses and the ence and technology, and the Internet. While International Diamond Manufacturers Association. Antwerp’s cutting tradition has felt the impact of The HRD (Diamond High Council) is being competition from low-cost cutting centers, such revamped through a process of modernization under competition has raised the local standards of skills and its new director-general, Peter Meeus. Antwerp’s four technology with tremendous increases in the efficien- diamond bourses, the oldest in the world, lead the cy of all operations. global industry in developing dispute resolution and For years, the international diamond trade operat- arbitration procedures. ed in an environment largely protected by De Beers. In July 2000, the city will host the Antwerp Recent experience and De Beers’s new commercial World Diamond Congress, a major platform for stance reveal the weakness of a production-based, addressing the challenges that face the global diamond rather than market-driven, strategy. The vicious industry. With the implementation of forward-think- impact of the “reverse ripple effect” (i.e., downstream ing and constructive development strategies, Antwerp market conditions—whether good or bad—are diamantaires believe there is no reason why diamond inevitably exaggerated in the cutting centers) can be jewelry could not be a $100-$150 billion world mar- devastating. More positively, contending with critical ket given the right design, merchandising, and pro- change and challenge is illuminating. A self-examina- motional approach. Antwerp is picking up the pace. tion analysis (SWOT—Strengths, Weaknesses, Opportunities, and Threats) defines several issues that merit attention, including commoditization, erosion E-mail address: [email protected]

46 SYMPOSIUM PROCEEDINGS ISSUE The Indian Perspective: Challenges and New Developments

M. A. Mitchell Argyle Diamonds Perth, Australia

ARLIER THIS YEAR,ARGYLE DIAMONDS Whichever way you look at it, the growth in the celebrated its 10th year of operating in India. I Indian diamond and jewelry manufacturing industry E have, in fact, been going to India for the last 20 has been one of modern India’s great success stories. years, visiting factories, meeting with diamond indus- try representatives and, of course, selling diamonds. Elements of India’s Success The last 20 years have been a period of great chal- Let us now look at the elements of this success and lenge, opportunity, and growth in the Indian dia- what they might mean for the new millennium. mond industry, a period during which Indian manu- Purchasing and Financial Strength. Security of supply facturers reached a position of dominance. Let me has always been critical in the diamond industry. The remind you of how far the Indian diamond and jew- Indian manufacturing industry has excelled by estab- elry manufacturing industry has come and what has lishing an efficient infrastructure to ensure a stable and been accomplished. growing supply of rough diamonds, accompanied by the financial capacity to fund these purchases. • Today, more than 100 Mct (million carats) per Today, Indian diamond manufacturers have pur- annum of rough diamonds are processed in chasing offices in the world’s major trading centers— India. Tel Aviv, Mumbai (Bombay), and Antwerp. The • Approximately one million people are directly Indians also regularly visit Russia and Africa to secure employed in the Indian diamond industry, and supplies. Whether they are buying through CSO many more support their activities. sights (and there are 40 Indian sightholders) or on the open market, the Indians are well organized and have • The first laser machines were introduced into the business acumen to ensure continuity of supply India in the late 1980s. Today, there are more under any scenario. than 400 lasers in operation. Ability to Process a Wide Range of Product. The Indian • 19 out of 20 diamond polishers in the world manufacturing industry has the skills and capability to reside in India. process any type of rough diamond. For a long time, • Indian polished exports have more than doubled India manufactured rough rejections that were both in the last five years, to over US$5 billion. labor-intensive and extremely difficult to process. Cutting and polishing these “rejections” provided a • India is now the leading exporter of polished dia- sound basis for learning how to get the most out of a monds in terms of both value and volume. rough diamond. It also positioned the Indian dia- • Today, exports of diamond jewelry from India mond industry for manufacturing the difficult large- are approaching $1 billion, up from $155 million scale Argyle production that commenced in the early in 1990. 1980s. Cutting and polishing the Argyle product pro-

GEMS & GEMOLOGY FALL 1999 47 vided further skills development and product under- The Millennium Challenge standing. The strong growth over the past 25 years has secured In the early days when I visited Indian factories, a great future for the Indian diamond industry. India they were essentially part of a cottage industry. In a is likely to see an even larger market share, as it con- relatively short time, traditional Indian diamond-cut- tinues to dominate diamonds and diamond jewelry. ting skills have been enhanced enormously by the The global environment in which the Indian dia- rapid adoption of technology such as diamond- mond manufacturing and jewelry industries now impregnated cutting wheels and automated polishing, operate is unlikely to change in the foreseeable future. in addition to laser sawing. As a result, the Indian That is: manufacturing industry is now in a position where it • Low inflation can process the full range of rough, from very small, • Increasing competition low-quality stones to the more expensive and larger • Shrinking margins products. In fact, many diamantaires in other cutting • A shortened distribution chain centers are increasingly subcontracting their cutting There is no room in the chain unless you can add and polishing activities to the Indian industry. I antic- value. The search for improved value and profitability ipate that we will see the Indian industry increasingly is relentless. dominate manufacturing across the full range of dia- In this environment, I see the challenges as two- monds and diamond jewelry. fold: (1) the possibility of new players entering the retail market, and (2) the possibility that large-scale Global Marketing and Distribution Systems. The Indian manufacturers of diamonds and diamond jewelry will diamond industry has excelled in the worldwide mar- distribute directly to consumers through the Internet. keting and distribution of both loose polished stones As the Indian powerhouse searches for further and, more recently, diamond jewelry. Now, not only growth opportunities, we may see a greater number of can they effectively acquire a wide range of rough and Indian companies in the retail business; after all, they manufacture it competitively, but they also can sell it are already financing a large part of the stock in the successfully on a global scale. Family members in retail and jewelry manufacturing pipeline. Indian companies are mobilized to provide an Alternatively, the move to Internet marketing is a logi- unprecedented level of vertical integration and super- cal next step to complete integration. If retailers are to efficient communications. To give you an example, meet the challenge of this sort of competition, then one of our key customers buys Australian rough from they need to look at new ways in which they can dif- our Antwerp office, cuts and polishes it in Mumbai, ferentiate themselves and add value for their customers. has a jewelry factory in Surat, and distributes both loose These are exciting times. Argyle Diamonds (the polished stones and diamond jewelry in New York. world’s largest diamond mine), India (the world’s These three success factors combine to produce a largest diamond manufacturing industry), and the typical Indian product that represents high quality and United States (the world’s largest consumer market low cost. For retailers, this translates into better mar- for diamond jewelry) have come a long way together. gins. For the end consumer, it means more value for The journey is not yet complete, and we look for- the money. This is the only formula for success in an ward to working together to meet the challenges of increasingly competitive environment. the new millennium.

48 SYMPOSIUM PROCEEDINGS ISSUE Diamond Manufacturing and Distribution: The Israeli Perspective

Shmuel Schnitzer Israel Diamond Exchange and M. Schnitzer & Co. Diamonds Ramat-Gan, Israel

T PRESENT, THE ISRAELI DIAMOND industry goods — the improvement is fast and decisive. is enjoying an upswing period, and I have We have every reason to believe that we should A good reason to believe that this momentum be truly optimistic about the future. Even with new will continue well into the year 2000. sources in Canada, and with the expansion of production Last year (1998), De Beers reduced its worldwide in Botswana, it is clear that demand for quality diamonds rough supplies by 28%. As Israel’s annual consump- will greatly surpass the growth in new rough supply. tion of rough diamonds is equivalent to more than New markets will fuel the expansion of the diamond 70% of the CSO’s annual sales, it is clear that CSO business. The greatest hope lies, I believe, in the Chi- policies affect the Israeli industry each and every day. nese market, which is likely to be the world’s most However, in 1998, Israel’s exports of polished dia- attractive market at the onset of the new millennium. monds declined by only 11.5%, to $3.65 billion. We also anticipate other promising new markets, such Actually, we have no complaints about the reduction as Eastern Europe, India, and South America. in volume of rough because, as partners to our rough suppliers, we realize that we also had to make a con- tribution to the welfare of the entire industry. The Israel Diamond Exchange, in Ramat-Gan, is an This year, we believe that polished exports will important hub for the Israeli diamond market. It is approach $4 billion. The success of De Beers’s policies estimated that polished exports from Israel could reach should cause prices of polished diamonds to firm, espe- almost $4 billion in 1999. cially in the latter part of the year. Today, 62.8% of all our direct polished exports are destined for the United States. We estimate that an additional 15% of our exports to other countries eventually end up in the U.S. In the first half of 1999, we saw our exports to Hong Kong, which is a virtual barometer, increase by 11%. We also see encouraging buying activity from Japan. Fueled by a stronger yen, Japan’s polished imports rose by 21% in the first quarter of this year. This suggests that the Japanese market remains very important, and the purchase of diamond jewelry remains an integral part of that country’s consumer behavior. As a result of this improved situation, 25 new dia- mond factories have opened in Israel over the past few months. That is the other part of the so-called ripple effect: When the pendulum swings back— and we have already felt the effect of a shortage of

GEMS & GEMOLOGY FALL 1999 49 Diamond Economics

The Effect of International Economic Developments on the Diamond Market

Carl Pearson Econunit London

HE DIAMOND MARKET, like many other competition in the diamond business has intensified, markets, is confronted with a rapidly chang- exacerbated by overcapacity and a slowdown in retail Ting competitive landscape (see figure). demand worldwide. Focused marketing and access to Profound shifts in the international business environ- diverse and competitive supply sources have become ment during the 1990s have had (and no doubt will the main considerations in maintaining profit margins. continue to have) far–reaching effects on the diamond Also, the market dynamic has shifted from Asia to industry. In particular, globalization and rapid techno- America. The dependence of the diamond industry logical change are transforming the world economy. on the U.S. is striking. The U.S. has not had such a The old models of doing business are having to adjust big share of the world retail market for 30 years or to new realities. In the new economy, there are no more. Whereas America suffered from the strong yen friends or enemies, just competitors. in the 1980s, the Japanese and Asian markets have In the 1980s, companies began to apply principles suffered from the strong dollar in the 1990s. of sustainable competitive cost advantage on a global After the ups and downs of the past few years, sup- scale. In diamonds and jewelry, firms moved to set up ply and demand are in better balance and there is and utilize manufacturing capacity in Asia and, to a undoubtedly room for growth in the world diamond lesser extent, Latin America. In the 1990s, global market, with considerable untapped potential. Margin pressures will no doubt remain, but globaliza- tion and new technologies will bring opportunities, as Powerful and diverse forces will mold the well as challenges, for both small and large firms. diamond market of the future. In a changing world, the diamond business is for- tunate to have strong and vigilant global institutions, such as GIA. New technologies and new treatments bring new threats to the market. Anything that harms the integrity of the industry has to be resisted. Supporting GIA, therefore, has to remain a priority for everyone. Finally, spare a thought for De Beers. They, too, are having to come to terms with globalization, com- petition, and the changing supply-demand balance. At the 1991 Symposium in Los Angeles, I noted that the diamond business depends on confidence—confi- dence in the product and confidence in the system of marketing. Despite all the changes in the world since then, I have no reason to alter my opinion.

E-mail address: [email protected]

50 SYMPOSIUM PROCEEDINGS ISSUE Diamond Economics: A Dynamic Analysis

Martin Rapaport Rapaport Diamond Report New York

HE DIAMOND INDUSTRY is undergoing Diamond Pricing Will Change. The diamond unprecedented change and development. industry is unique. Rough diamond prices are now TNew information technologies will revolution- controlled by the De Beers CSO, while polished dia- ize the distribution system and play havoc with tradi- mond prices are established in a free market. The dia- tional profit margins and marketing strategies. The mond trade often finds itself in an untenable position rough- diamond markets and De Beers Central Selling because rough prices are not adjusted downward Organisation (CSO) will be forced to reinvent them- when polished demand declines. Consequently, selves, as global economic forces play a greater role in rough prices are sometimes higher than polished dictating polished diamond prices. The fundamental prices. In this scenario, diamond manufacturing is economics of the diamond industry will change, as firms unprofitable and cutters put tremendous pressure on look for new ways to generate profits in an increasingly retailers for higher prices, even though there is insuffi- complex global marketplace. Firms will have to adopt cient demand to justify them. new strategies and new ways of doing business if they The imbalance between rough and polished prices are to succeed in the diamond markets of the future. and the resultant lack of profitability for diamond cut- Some people still complain that certificates and ters is a primary CSO problem: When cutters do not price lists have destroyed profit margins in the dia- make money, they cannot buy rough and the CSO mond industry. Pray tell, how will these same firms stockpile increases. The CSO is currently undergoing adapt to the information revolution now taking place a strategic review that will undoubtedly conclude that on the Internet? The availability of specific pricing they should maintain a profitable relationship be- and inventory information to consumers is growing tween rough and polished prices. If they follow this exponentially. The old days when you could make course, polished prices will drive rough prices, and money because consumers did not know diamond diamond pricing will be beyond their control. prices or quality are over, kaput, gone. It is reasonable to expect that the CSO will modi- fy their powerful role in diamond pricing over the The Importance of Adding Value. The only way next few years. They will give higher priority to lim- a firm can make money in the diamond business is by iting the size of their stockpile than to controlling adding value to the diamond product. Jewelers who prices. More than ever before, the industry will have think they can make “traditional margins” by simply to self-regulate prices and deal directly with problems placing a diamond into a four- are that result from increased diamond price volatility. dreaming of the past instead of planning for the In conclusion, the diamond trade is entering a future. Firms can and must add value to the diamonds period of great transition. We should expect signifi- they sell—through better design, customer support, cant change in all sectors—from the mining and education, branding, and hundreds of other ways. We wholesale distribution of rough to the retail distribu- must recognize that the cost of selling and shipping tion of polished. Our challenge is to confront these diamonds to consumers via the Internet is significantly changes head-on. To turn adversity into opportunity. below the cost of traditional retailing, so Internet sellers To find new ways to participate in the exciting mar- can move diamonds at margins well below those that kets of the future. any in-store retailer can afford. While jewelers can compete on the Internet, they cannot compete with the Internet. Traditional jewelers must define exactly how they are adding value to the diamonds they sell. E-mail address: [email protected]

GEMS & GEMOLOGY FALL 1999 51 The Diamond Distribution System

Eli Haas Diamond Dealers Club New York

HE DIAMOND INDUSTRY has undergone one-half, one-third, and sometimes one-fifth of their wrenching changes in the past decade— original value. Over and over, those consumers said Tfrom the way rough diamonds are mined and that the first thing they’d replace when the economy marketed, to the way they are polished and eventually turned around would be their diamonds. We can take sold to consumers by retailers. The only thing we can some comfort from that. predict with any certainty is that changes will contin- It sounds like a rosy picture, but will it actually ue to occur, but they will arrive much more rapidly remain this way? Can we count on the status quo to and they will require enormous adaptability at every continue? De Beers is undergoing a massive manage- level of the industry. ment review of its entire structure, and its leaders are Currently, the diamond industry is shaped like a considering the fundamental question of whether funnel. Diamond production comes from all over the they want to, or even have the ability to, continue world, then funnels down into the narrow distribu- the single-channel marketing system into the 21st tion channels of rough diamonds that eventually reach century. The answer to that question will determine the cutting centers. Today, something close to 70%— how most of us in the industry will fare in the future. and probably nobody outside of the Central Selling It has been said that “Change is the great equaliz- Organisation knows the exact figure—of the world’s er,” but I have to disagree in this case. If De Beers rough diamonds are distributed through De Beers. decides to give up the single-channel distribution sys- Most recently, we saw Russia sign an agreement with tem, this change will not equalize the playing De Beers. Only a few months ago, De Beers also ground—it will rewrite the rules of the game. Some signed an agreement to sell 35% of the production of people will benefit from it, but others undoubtedly Canada’s Ekati mine. As much as we would like to will lose. De Beers, no longer a monopoly but a avoid a well-worn subject, De Beers is still the funnel competitor, would be a dominant competitor, with through which diamonds reach the rest of the indus- extensive resources and an enormous advertising bud- try, and it would be foolhardy to ignore that fact. De get. De Beers would have the ability to integrate ver- Beers influences everything that happens in the dia- tically into every retail niche that’s been carved. mond industry, all the way down to the retail level. Supply channels for polished diamonds would narrow Although the current arrangement is monopolis- dramatically. Polished diamond distribution would tic, it does provide stability. First, our industry bene- become every bit as controlled as today’s rough dia- fits from the well-funded De Beers marketing cam- mond distribution is. If such a scenario unfolds, many paign. Then consider the steadying influence of the retailers will be left out of the picture altogether. single-channel marketing system for rough diamonds, Nevertheless, the general outlook in the U.S. is as we saw after the Asian economy collapsed in very positive. As long as the economy remains strong, October 1997. In a normal competitive environment, we can expect vigorous and healthy diamond and diamond prices (both rough and retail) would have jewelry sales. fallen 30%–40%. Korea was hit especially hard, yet Korean consumers were still able to convert their dia- mond jewelry into money at a reasonable approxima- tion of what they paid for it. Other valuable com- modities—real estate, cars, furs, artwork—fell to E-mail address: [email protected]

52 SYMPOSIUM PROCEEDINGS ISSUE Retail Markets and the Growing Global Significance of Branding

Russell Shor GemKey USA New York

rom the 4 Cs to Commoditization And Quality Cuts For centuries, buyers and owners of diamonds Quality retailers and their key diamond suppliers, Fvalued them strictly for their beauty as measured being resourceful businesspeople, evolved a strategy to by the 4Cs, the pleasure they brought the wearer, and fight back: They offered quality cuts such as “ultra- the awe and envy they inspired from those around the Ideals,” which weren’t governed by certificates. wearer. That situation reached its peak about 20 years Cutters created new and proprietary cuts such as the ago, until the great commodity boom of 1980, when Gabrielle, the Radiant, and many others that could newspapers were full of talk about $800 gold and “dia- not be checked easily against a lab report or in the mond investments”: A one carat D-flawless sold for Rapaport Report. Their aim, besides raising profit mar- $62,000, and pundits said it was cheap at twice the gins and reintroducing “distinctiveness,” was to price. The investment boom didn’t last very long, but reestablish the diamond as a symbol of romance and its legacy—in the form of an increasing dependence prestige in an age where Wal-Mart sells them along- on laboratory grading reports and price lists—changed side garden hoses and plastic dishware. the diamond market forever. Publisher Martin Rapaport got his start in 1978, when prices were rising And Now: Branding faster than he could put them into print. On the sup- The industry is just entering the next phase— ply side, diamond production more than doubled in branding—which is becoming a lot more controversial the 1980s; at the same time, worldwide demand than the new cuts. It’s controversial because of the De tripled, thanks to the economic boom in Japan and, Beers initiative (the “Millennium Diamond”), which eventually, throughout the rest of Asia. many people in both retail and wholesale believe is an But what should have been a diamond manufac- attempt by the “diamond giant” to seize control over turers’ paradise was tempered by cutthroat price com- the so-called downstream diamond market. petition, discounting, and that dreaded word—com- De Beers claims that their research and that of oth- moditization—that is, the selling of diamonds by certifi- ers clearly demonstrates that consumers want branded cate and price list at much lower margins, as little as diamonds and branded jewelry—whether it is by De 20% in some cases. Retailers played one supplier off Beers or another reputable company. And most will against another, with the result that margins and cash pay more to get a brand that means prestige and instills flow fell into a downward spiral that only recently confidence that the buyer made the right decision. appears to be bottoming out. About four or five years ago, De Beers conducted Now the Internet can complete the process by an extensive consumer study about synthetic dia- making the purchase of diamonds almost automatic. monds. After the interviewer had explained what syn- A recent check of the eBay on-line auction compa- thetic diamonds were—that is, actual diamonds made ny, for example, listed 1,432 diamond items, ranging by man, as opposed to simulants such as CZ—most of from $19.95 to $7,000. GemKey lists more than the survey participants felt that a reputable jeweler $150 million worth of diamonds and each could spot synthetic diamonds and would not pass day on its trading network. And that’s just to the trade. E-mail address: [email protected]

GEMS & GEMOLOGY FALL 1999 53 them off as natural stones. But that was most of the consumers surveyed—not all of them. A minority did not have such confidence, and they said they felt like “red meat” to a jeweler who possessed all of the knowledge. Also, De Beers found that many con- sumers would pass over diamonds for something else if they felt a jeweler could not spot the differences between synthetic and natural stones. It was this study that launched the initiative to develop synthetic dia- mond detectors and the branding program. Further, De Beers surveys found that consumer feelings about the “inviolability” of diamonds actually worked against branding at first. While jewelry buyers readily accept cultured pearls that have been tumbled and bleached and colored gems that have been heat- treated or irradiated, diamonds have to be pure and untouched. Consumers were worried that the mark would compromise the diamond’s quality. Since no company had undertaken such consumer research about diamonds before, almost all of this pro- ject was a trip into the unknown. Focus groups and questionnaires gave De Beers some clues, but by last year it was clear that most of these concepts had to be proved in the marketplace before further decisions could be made. This is what led De Beers to launch the trial marketing program of its branded diamonds at As part of De Beers’s marketing for the new millen- Boodle & Dunthorne, a British retail chain. nium, the Mikimoto diamond feather brooch (with The key questions were: (1) Will consumers accept an 11.10 ct diamond as the centerpiece) was part of a “marked” diamond, and (2) How much more are a collection featured at the “Diamonds Are Forever: The Millennium Celebration” gala event held in they willing to pay for one? Other questions addressed London June 9, 1999. Photo by Albert Watson. whether or not consumers wanted the “extra” reassur- ance of a serial number on their diamond and a De Beers in-house certificate that said the diamond was the size of the diamond market, not carve a bigger natural and untreated. slice for retailers and sightholders selling its own The next step was to develop a sales training pro- branded diamonds. De Beers already sees this happen- gram for the Boodle & Dunthorne staff so they could ing in other luxury markets. For example, many con- properly explain what the brand meant and that the sumers will pay $5,000 for a new Louis Vuitton flight marking on the diamond was meant to enhance value, bag even if they already have a flight bag, because it’s not compromise it. De Beers and Boodle & Dun- something new and exciting. In short, the brand drives thorne began the program in July 1998 with a 10% the demand for the product as much as it does for the premium over comparable unmarked diamonds. Since brand itself, according to De Beers. then, they have been steadily pushing that premium Last, some retailers, such as Cartier, have successful- past 15%. According to De Beers, not one consumer ly built a store brand of their own. However, “third has refused to buy a branded diamond because it costs party brands” such as that offered by De Beers, other more. In fact, Boodle & Dunthorne have decided to diamond houses, or respected industry groups (e.g., the convert their entire inventory of diamonds over 30 American Gem Society or World Federation of points to De Beers-branded goods—even complicated Diamond Bourses) can be the global equalizer—ensur- pieces such as multi-stone rings. ing quality standards and helping retailers who do not Ultimately, De Beers hopes branding will increase have great resources compete in the “branded” world.

54 SYMPOSIUM PROCEEDINGS ISSUE Diamond Market

A Manufacturer’s Perspective

Sean Cohen Rand Diamond Cutting Works (Pty) Ltd. Johannesburg, South Africa

HE ENTIRE DIAMOND INDUSTRY is manufacturers’ funding other sectors of the industry, in changing, and the rate of change is increasing. particular, the retail jewelry business. TNotable within this changing industry is the evolv- The economic crisis in Asia actually saved the dia- ing role of the diamond manufacturer. Whereas in the mond industry by injecting it with a strong dose of reality. past the manufacturer’s role was clearly defined as one of As a result of the Asian crisis, companies and institutions polishing diamonds and selling them at wholesale, now related to the industry realized that the system by which the manufacturer is entering an era of vertical integration. the industry operated was unstable and unsustainable. This involves purchasing the rough diamonds as close to As we look to the future, we see that the information the source as possible and then selling the polished stones age, which dominates commerce today, will bring many as close to the ultimate consumer as possible. The era of positive benefits. Not only has it already moved diamond vertical integration for diamond manufacturing will manufacturers in the direction of vertical integration, but change the “mix” of manufacturers involved in the busi- it also has produced a number of broad trends that will ness and, concomitantly, it will have a large impact on the usher in a new era of profitability. role of dealers and possibly retailers. First, enhancing efficiency by outsourcing services can The role of diamond manufacturers started to change create highly dynamic small firms. Like fish in the ocean, back in the late 1970s, as the GIA Gem Trade small firms need to react quickly if they are to survive. Laboratory grading reports and Rapaport price lists grad- With the manufacturing efficiencies inherent in outsourc- ually became accepted worldwide. Standardized grading ing and the nimbleness of small firms, we may see a signif- and pricing allowed rough to be priced more tightly in icant change in the dynamics of all manufacturing firms. relation to polished. At that time, many in the industry Second, branding is here to stay. In the future, due to did not understand the effect that these reports and lists public demand and the widespread availability of dia- would have during an era of seemingly endless price monds on the Internet, there will be a plethora of brands. increases for polished goods. However, with rough As a result, there will be at least 20 different versions of a being priced ever closer to realizable polished value, “G-VS2”, each with its own price point. The prices for manufacturers were forced to increase their yields to polished goods will not be nearly as definable as they are combat low margins. now. If polished prices are variable, then the price gap By necessity, this environment created significantly between polished and rough will be greater, and there will greater manufacturing efficiency. Yet, the cost savings be more opportunity for better profitability. The informa- generated were constantly being eroded by the ever- tion age will, with the correct usage, bring profitability increasing prices for rough. To further combat the lack of back to the industry. profitability, manufacturers sought to increase turnover Last, diamonds have intrinsic value. Humans have while maintaining their overhead. Increased turnover led been captivated by them for thousands of years. As long as to a glut of polished diamonds, as the greater capacity that there are human beings and luxury products, diamonds had been achieved drove their demand for rough. This will be bought and there will be diamond manufacturers. glut led to competition for sales, which resulted in the With new marketing methods, diamond manufacturers need for ever-longer credit terms and greater bank financ- will absorb an ever-increasing and profitable role within ing. This situation has eroded many of the gains made by the diamond industry as a whole. increased turnover and led to moribund prices for pol- ished diamonds. In addition, it has resulted in diamond E-mail address: [email protected]

GEMS & GEMOLOGY FALL 1999 55 The U.S. Diamond Industry

Benjamin Janowski Janos Consultants New York

HE U.S. DIAMOND INDUSTRY enters the device that raises visibility— especially consolidation, 21st century with several history-making branding, and technology, but particularly the Internet. Ttrends in full force. Most importantly, the U.S. The aim is to dominate their market segment, and to has evolved from a manufacturing society to a ser- increase productivity to the point where turnover — vice-based society, and now we are emerging as a the sale of larger volumes — overcomes the lack of communication- and information-based society. gross margin. Soon, the consumer will have the ability to be fully informed on any subject, to reach multiple global Consolidation sources with a speed and ease that will fundamentally Consolidation, especially at retail, has reached a final alter any conceptions we now have about the way the stage. Television, like the wholesale clubs, has only world works. There will be no future for companies four meaningful companies in jewelry. The mall jew- with business models and profits that rely on geo- elry sector has seen some 40 operations disappear in graphic isolation, limited communication, or the the last seven to eight years. Only 10 or so chains will ignorance or laziness of the consumer. exist in the mall jewelry sector by 2005. Only suppli- The industry’s evolution has accelerated to a point ers with significant capacity in production, systems, where entire segments are at risk. Catalog showrooms and support will be able to service this sector. have essentially disappeared, as have jewelry distribu- The days when any credit-worthy diamond com- tors. The number of diamond importers and dealers pany could buy goods from prime sources appear to has declined rapidly, while jewelry imports have be ending. Prime goods are going to be channeled grown just as fast. Suppliers of loose diamonds feel through a preferred value chain of distributors, manu- compelled to be in jewelry manufacturing, and they facturers, and retailers, and there will be a distinct are finding the transition daunting because of the vast effort to cut off competition. Nevertheless, small, differences between the two businesses. At the same innovative companies, who sense the public’s needs time, television shopping networks and wholesale and who respond accordingly, will outperform large clubs, once disparaged, are now sizable businesses. rivals, and may even undo them. The Internet is causing distress mostly because it is an “invisible” opponent—there is no real estate to Branding inspect. And this one has the power to dwarf any- The fundamental nature of diamonds makes true thing we have seen. branding particularly difficult, since a brand name can- The supply side remains fragmented and faces dif- not be ostentatious or visible on the principal prod- ficult times in a market that will value marketing and uct. Nevertheless, branding is going to have central distributing power far more than purely manufactur- importance for Internet sales, and that guarantees that ing skills. Heavy competition, informed consumers, considerable effort will be exerted to create successful and excess capacity at all levels of the industry have brands. caused shrinking margins for some years, and it is The De Beers brand has great potential, but we finally sinking in that margins are not going to can be certain that many others will make efforts in improve within the present structure of the trade. this area. Although there will be few successful bran- To address the many new challenges facing the U.S. diamond industry, companies are pursuing any E-mail address: [email protected]

56 SYMPOSIUM PROCEEDINGS ISSUE ders, we can expect a great deal of jockeying for posi- world diamond production is unlikely. tion around those who do succeed. Cutters, jewelry Other major producers will build comparable net- manufacturers, importers, wholesalers, and retailers all works of large customers. In this scenario, a compa- will want strong alliances with the brander. Branding ny’s position in the value chain will mean a great deal. stands out as a singularly powerful tool for attaining All others will have inordinate difficulty finding the size and profits, and it will be futile to fight the trend. goods they need at a price that is affordable.

Technology: The Internet Scenario 2. Retail Domination. The continuance of the present situation, in which retailers foster competi- The enormous capacity of the Internet will provide a tion among suppliers in order to extract the lowest quantum leap in the ability to communicate and to possible price, could continue for years. Major retailers project image and personality. It is a mistake to imagine will connect directly with major sightholders (both the Internet of the future as a faster, upgraded version within De Beers’s domain and outside it), and large- of what we have now. We will have the “experience” scale disintermediation will result as consolidation of buying jewelry delivered to us in a manner that sur- intensifies. Independent retailers will join the fray, passes almost any in-store experience we know. with many of the stronger operations establishing simi- By 2005, 10% –15 % of the country’s jewelry busi- lar associations with the dominant suppliers. There ness, or about US$6 billion, may be generated by the would still be room here for relationships between Internet, directly or indirectly. A new retail format that retailers and mid-sized, established diamond compa- captures 15% of the business while still in its infancy nies. However, the Internet could radically change the will have an enormous impact on the status quo. Some balance of retail power. are already saying that the diamond business as we know it is finished. Indeed, it is likely that, with regard Scenario 3. Distributive Domination. A number of to pricing, the Internet will produce the equivalent of a wholesale suppliers establish powerful brands and find public bourse. Even the Rapaport list could fade out, as both manufacturers and retailers at their door. The the Internet becomes the great equalizer. Internet takes another piece, flattening the hierarchy This new dynamic will require a new set of mar- and making distribution the most important and valu- keting skills, most critical of which will be producing able asset. In this scenario, verticalization and alliances sales velocity. Small family businesses, which histori- attain any number of variations, and the distinctions cally nurture their stocks and rely on relationships, between suppliers and retailers really blur. may no longer be viable. Even now, with diamond lists available to retailers on Web sites, dealers have Scenario 4. No Domination. Everything happens, and found that there is little loyalty, only a search for value. doesn’t happen. There are enough sources of polished Jewelers need to view such an environment as an goods to satisfy any diligent buyer. Major chains con- opportunity. If they succeed, we will see a revitalized and tinue to consolidate, absorb weaker ones. Inde-pen- energized independent sector. dents maintain the high ground in the guild business. Branding brings credibility and stability to the trade, What Are the Possible Scenarios We Face? and the threats of synthetics and treatments are dis- Scenario 1. Supply Domination. The hope is that De armed. The Internet grabs a large slice of business, but Beers will be able to continue single-channel mar- in its democratization it generates as much new busi- keting, and rebuild a situation in which inventories ness as it takes away. make money by sitting on the shelf. De Beers will not relent in its pursuit of control, at least in better Watchwords and larger goods, and it will seek success by funnel- The watchwords for the future will be efficiency, speed, ing stocks through a limited number of favored innovation, and anticipation; not necessarily size, longevi- sightholders. ty or deep inventories. Product will count less than mar- However, this will be a multi-polar world, and keting, and inventory might well be treated like a hot unless there is a remarkable turnaround in producer potato. sentiment, De Beers control of a high percentage of Which scenario is the likely one? Take your pick!

GEMS & GEMOLOGY FALL 1999 57 Today and Tomorrow in the Japanese Jewelry Market

Hidetaka Kato Kashikey Co., Ltd. Tokyo

HE J APANESE JEWELRY MARKET has under-performing retail outlets or excess facilities, and experienced great changes in the past decade, withdrawing from non-core or unprofitable segments Tincluding the shift from a seller’s to a buyer’s of the jewelry business. Notwithstanding these efforts, market. As a result, we need more skills to market our some companies were forced to declare bankruptcy, products. The present situation is a consequence of the including a few so-called top-ranked companies. economic slowdown that started in 1991 and has In due course, the jewelry market in Japan will grown progressively worse. recover and thrive. However, I feel that it will never After extremely rapid growth in the 1980s, the expand as rapidly as it did in the past, and that the Japanese retail jewelry market reached record sales of retail jewelry market will become far more competi- ¥3.015 billion (US$22.8 billion at the average tive. For all practical purposes, the Japanese jewelry exchange rate for that year) in 1991, but by 1998 it market is mature and soon will be saturated. To be had declined by almost half, to ¥1.595 billion successful in such a market, major improvements will (US$13.3 billion at the average exchange rate). This be required in retailing, merchandising, and presenta- slowdown is also reflected in changes in Japan’s pro- tion skills, in addition to developing beautiful jewelry. portion of world diamond sales. Whereas in 1991 Although most of these aspects of the retail jewelry Japan accounted for about 30% of the world’s dia- industry can be evaluated quantitatively, the issue of mond sales by value, this had fallen to 25% in 1997 ”emotion” is particularly important in Japan. We are and probably reached its low point in 1998, at a mere seeing a trend in purchases away from those items that 18%; by comparison, the United States accounted for people buy for their usefulness and can replace easily, upwards of 40% of the world’s diamond sales last year. to those that they buy for some important reason and This decline was reflected in all sectors of the Japanese which have no substitute. It may represent a valuable market. Furthermore, partly because of the increasing memory, or it may be a symbol of some emotion. popularity of a new concept, the “simple wedding,” One such emotion is affection, which immediately the acquisition rate for diamond engagement rings conjures up the image of a diamond. Although this shrank from 76% in 1994 to 68% in 1998 for first concept is well established in our market, its impor- marriages. tance will continue to grow. We know that we are However, improvement is on the horizon. During selling not only a diamond, or a piece of jewelry—but the first quarter of this year (1999), diamond imports also a dream. increased by 20% compared to the same period in Nevertheless, we in Japan are always alert to, and 1998. This bodes well for continued recovery for the prepared to respond to, changes in consumer tastes, remainder of the year. trends, and customs in our society, as well as changes During this long recession in Japan, companies have to business practices and the distribution system. Such tried to find ways to survive. Some have taken extreme changes are inevitable, and they are transforming the measures, such as restructuring, reducing costs, closing Japanese jewelry industry.

58 SYMPOSIUM PROCEEDINGS ISSUE The Developing Market in China

Gerald L. S. Rothschild R-W (Diamond Brokers) Ltd. London

HE DIAMOND SCENE in the People’s provincial) assistance. The Chinese authorities in Republic of China has altered considerably Beijing and Shanghai are working on measures to Tin the course of the last 20 years. Following encourage diamond and jewelry manufacturing in the liberalization policies adopted by Deng Xiao Ping, China—including reorganizing the tax system to there have been fundamental changes—mostly in the allow local industries to compete with imports, offi- main commercial centers, coastal areas, and border cial and unofficial, from overseas. At the same time, provinces adjoining Hong Kong and Macao—which overseas diamond companies have invested in manu- have affected every sphere of life. Today, numerous facturing opportunities in China, both to take advan- centrally and locally funded infrastructure projects are tage of the lower production costs and to establish a taking place. Much overseas investment by ethnic base for the market possibilities that are anticipated to Chinese individuals and companies, and by govern- develop in the years ahead. ments and foreign organizations, has flowed into the In recent years, De Beers has undertaken educa- country. A consumer society has started to develop tional programs to increase and improve consumer that includes Western-style shops, some of interna- awareness. Encouraging results have been achieved— tional standing. Advertising on television, in maga- supported by estimates of growth in total sales, and of zines, and in newspapers— both locally and national- the rise in the average price of jewelry items sold. By ly—has played a role in creating consumer interest way of example, the Chinese market for diamond and awareness. There is disposable income in the jewelry grew during the 1990s from insignificant to hands of more people, with a growing middle class $500 million in 1998. Current De Beers marketing that is backing its preferences with purchasing power. programs are attempting to introduce the concept of Social changes are also in process. Some of the tra- the diamond wedding ring and to promote diamond ditions that governed life for generations are being acquisition among men. forced to adapt to new ways of thinking and action. Much work remains to be done, and care has to There is a sense of relief that the drab uniformity of be exercised, to find the right partner with whom to Mao days has changed in favor of a more interesting, work in China. However, there are opportunities for exciting, and colorful way of life —affecting especially growth and development in which both local compa- those members of the younger generation who live in nies and foreign enterprises can take part. The size of big cities and who have access, through language China’s population, the increase in wealth and awareness, to outside influences. income, and the growing awareness of Western styles These changes have substantially influenced dia- and fashions—including jewelry—promise a bright mond developments in China. Prior to the 1990s, future for the diamond market in this rapidly devel- there was a distinct lack of a diamond culture com- oping nation. pared to the high acquisition rates among expatriate Chinese in neighboring countries and throughout the world. During the present decade, many diamond factories were opened with government (central and E-mail address: [email protected]

GEMS & GEMOLOGY FALL 1999 59 Colored Stone Sources

Ruby and Sapphire Occurrences Around the World

Robert E. Kane San Diego, California

FTER DIAMOND AND EMERALD, sap- Sapphire mining at the historic Kashmir deposit is phires and rubies are the most sought-after currently limited to sporadic alluvial workings along A of fine gemstones. Widespread use and the hill slides and old mine tailings. Limited geologic acceptance of heat treatment in the 1980s, and signifi- studies indicate that further deposits of sapphire may cant discoveries such as the vast ruby reserves in the await discovery in Kashmir. In 1979, a major deposit Mong Hsu region of Myanmar in the early 1990s, of fine-quality ruby was discovered in Azad Kashmir, have made rubies much more available and affordable about 350 km from the blue sapphire area than ever before. With the exception of Antarctica, The last decade has seen the discovery of, or gem-quality ruby and sapphire are mined on every increased mining activity at, deposits in Vietnam, continent. This abstract reviews the status of the Laos, and Cambodia. Ruby continues to be recov- active deposits on each continent, and concludes by ered from deposits in Nepal, Tajikistan, Afghanistan, addressing the question: Will supplies be able to meet and Pakistan. In addition to economic considerations, market demand in the next millennium? the viability of mining some of these regions is influ- Although still debated by geologists, with few enced by difficult terrain, as well as by political con- exceptions rubies and sapphires can generally be clas- siderations. Important alkali basalt sapphire deposits sified as coming from: (1) alkali basalts; (2) marble- are mined in at least three different areas of China. type deposits; or (3) metasomatic deposits and ultraba- Ruby is also known from several different regions sic bodies, such as those associated with pegmatites, there; the Yunnan and Guangxi provinces—which schists, gneisses, skarns, and amphibolites (see, e.g., border Myanmar, Laos, and Vietnam—are promis- Levinson and Cook, 1994; Muhlmeister et al., 1998; ing. Asia will continue to be a major supplier of ruby Schwarz, 1998). This distinction has significant com- and sapphire during the 21st century. mercial importance because rubies and sapphires recovered from alkali basalt deposits often are less Europe. There are several countries in Europe pure in hue, and typically are much darker in tone where gem-quality corundum is known to occur; and saturation (and thus frequently command substan- however, most are not producing commercially at tially lower prices) than their counterparts from other present. Russia has the greatest potential in Europe geologic origins. for economic ruby and sapphire deposits, but current- ly there is only minor production. Gem corundum Asia. Historically, Asia has been the predominant has been discovered at numerous places in the Ural source of ruby and sapphire, and significant quantities Mountains. Given the right conditions and incentives, continue to come from Myanmar and Sri Lanka. By this region could become a significant producer of the early 1990s, many of Thailand's important basalt- gem-quality ruby and sapphire. type deposits of ruby and sapphire were nearly exhausted, and today mining activity is greatly North America. Montana remains North America's decreased. India continues to supply major quantities most significant source of gem corundum. Huge sap- of low-priced ruby beads, cabochons, and star rubies. phire reserves are known to exist within four major Several locations in Orissa State in eastern India cur- rently yield fine-quality facet-grade ruby. E-mail address: [email protected]

60 SYMPOSIUM PROCEEDINGS ISSUE areas of Montana. Although limited production con- which are in the Mozambique Belt. The Tunduru tinues today from several different areas, the success or region of southern Tanzania is so rich in gems, includ- failure of these or future mining ventures depends on ing sapphire and ruby, that it has been described as the the ability to mine, heat treat, and cut the stones at a “new Sri Lanka.” Future discoveries of gem-quality cost that will enable the unusual colors and generally ruby and sapphire are likely all along this belt. small sizes to be sold at competitive prices on the Many other countries in Africa will continue to world market. provide exciting deposits of ruby and sapphire. For example, Uganda recently produced some unusually South America. Opaque and low-quality sapphire large ruby crystals. Last, Madagascar, which has many and ruby have been known in Brazil for many years. geologic similarities to East Africa, continues to reveal In the 1990s, however, a potentially economic its extraordinary sapphire wealth. Most recently, the deposit of facet-grade sapphire was systematically alluvial deposits in the Ilakaka region of southern explored in the Indaia Creek region of Minas Gerais. Madagascar have yielded impressive quantities of This deposit has yet to be mined commercially. attractive pink sapphire, as well as important quanti- Sapphires have been known in the Mercaderes-Rio ties of blue sapphire. Mayo area of Colombia since 1907. Small-scale min- ing continues to produce various colors, including Ruby and Sapphire in the New Millennium. As light to medium blue, and an unusually high percent- exploration techniques move beyond the simple age of color-change sapphires. Rubies also have been washing of gravels and placing of explosives toward reported. The future of these deposits will depend the use of sophisticated geophysical technology (such largely on economic and political factors. as seismic reflection and radar imaging for high-reso- lution mapping of near-surface deposits; see, e.g., Australia. Australia remains a major player in the Cook, 1997), even more gem corundum deposits will international sapphire market. Gem sapphire occurs in be discovered. When these advanced technologies are association with alkali basalt at numerous localities in combined with favorable political and economic con- eastern Australia. Large-scale commercial mining has ditions in less-developed countries, where mining been successful only at the Anakie and New England costs are relativity low, we will see the greatest results. fields. Geologic surveys indicate that Australia is very Current information indicates that not only will likely to remain a major supplier of commercial sap- market demand for ruby and sapphire be met in the phire well into the next century. 21st century, but a full range of qualities and price- points will also be available. Africa. Africa undoubtedly will be the source of many exciting future discoveries of ruby and sapphire. R EFERENCES Gem corundum continues to be commercially Cook F.A. (1997) Applications of geophysics in gem- exploited (to varying degrees) in Burundi, Kenya, stone exploration. Gems & Gemology, Vol. 33, No. 1, Malawi, Mozambique, Namibia, Nigeria, Rwanda, pp. 4 –23. Sierra Leone, South Africa, Tanzania, Uganda, the Dirlam D.M., Misiorowski E.B., Tozer R., Stark K.B., Democratic Republic of the Congo (formerly Zaire), Bassett A.M. (1992) Gem wealth of Tanzania. Gems & and Zimbabwe, as well as in the nearby island nation Gemology, Vol. 28, No. 2, pp. 80 –102. of Madagascar. As the latter half of this century has Levinson A.A., Cook F.A. (1994) Gem corundum in alkali already witnessed, East Africa has extraordinary gem basalt: Origin and occurrence. Gems & Gemology, Vol. potential. This is particularly true throughout the 30, No. 4, pp. 253–262. Mozambique Orogenic Belt, the 200 –300-km-wide Muhlmeister S., Fritsch E., Shigley J.E., Devouard B., geologic feature that runs from Mozambique in the Laurs B.M. (1998) Separating natural and synthetic south, through Tanzania, Kenya, and Ethiopia, to the rubies on the basis of trace-element chemistry. Gems & Sudan in the north; it is one of the richest gem-bear- Gemology, Vol. 34, No. 2, pp. 80 –101. ing regions in the world. In Tanzania alone, more Schwarz D. (1998) Aus Basalten, Marmoren und than 200 different occurrences of various gem miner- Pegmatiten. Rubin, Saphir, Korund: Schön, hart, selten, als have been identified (Dirlam et al., 1992), most of kostbar — extraLapis No. 15, pp. 5–9.

GEMS & GEMOLOGY FALL 1999 61 Emeralds—Recent Developments and Projected Changes in Supply

Dietmar Schwarz Gübelin Gem Lab Lucerne, Switzerland

N GENERAL, the most important factors Brazilian emerald deposits are impressive. However, affecting gem production are: (1) socio- the high production costs result in inflated prices for political, (2) logistical, (3) technical, (4) finan- the emeralds (Roditi and Cassedanne, 1998). Future Icial-commercial, and (5) geological-mineralogical. prospects depend primarily on whether the mines can The importance of each of these factors on produc- get sufficient capital to develop modern underground tion varies in each mining area. In some emerald-pro- operations. ducing countries (e.g., Zambia and Brazil), the domi- nant factors controlling the gem output are geologi- cal-mineralogical and technical (e.g., the lack of This fine emerald crystal from Coscuez in Colom- modern mining technology). In other countries, bia measures 1.3 cm high. Courtesy of Mel emerald production is controlled primarily by current Gortatowski; photo © Jeff Scovil. socio-political factors (e.g., Russia and Pakistan), and even by recurrent military operations (e.g., Afghanistan). The status of current emerald produc- tion and the future potential of the major producing countries are reviewed.

Colombia Colombia, the world’s most important emerald-pro- ducing country, is reorganizing its emerald industry, including the mining sector. Foreign companies have been invited to participate in joint-venture mining projects (e.g., Canadian companies at Chivor). Currently, there is only minor production at Chivor and Muzo. Coscuez is the most important mining area at present; it produces about three-quarters of Colombia’s emeralds (see figure). In the past few years, underground mining has begun to replace the historic open-cast mining operations.

Brazil The major problem facing most Brazilian emerald deposits is the complex geological conditions (e.g., extensive faulting, dislocations, or disrupted layers) in the mining areas, which requires the use of capital- intensive mining methods to follow the emerald min- eralization (Lau, 1998). The potential reserves of most

E-mail address: [email protected]

62 SYMPOSIUM PROCEEDINGS ISSUE Zambia production, has always been more dependent on For the past few decades, the Zambian government political-military conditions than on mineralogical- has attempted to control practically all aspects of the geological factors. Currently, emeralds are being emerald industry. This has made it impossible to mined in the Panjshir Valley, although there is no exploit the enormous potential of the emerald fields steady production, at least “officially” (Giard, 1998). in the Ndola Rural District (see, e.g., Milisenda et al., Comprehensive studies by Russian geologists indicate 1999). Optimistic predictions, which project annual that the region has significant gemological potential, production of about US$100 million (a value previ- but precise data on the emerald reserves are lacking. ously attained in the 1980s), have been voiced by some individuals with intimate knowledge of the Russia (Ural Mountains) Zambian emerald industry. If such goals are to be Although no new emerald deposits have been discov- realized, efficient underground mining operations ered in the Urals since 1945 (Laskovenkov and Zher- must be introduced. This will require government nakov, 1995), geological studies suggest that only support and guarantees, before private mining compa- about 30%–35% of the known reserves have been nies will make the substantial investments necessary to worked to date. Future prospects depend mainly on modernize emerald exploration and mining, as well as the implementation of cost-effective mining opera- other phases (e.g., marketing) of the emerald industry. tions along with a realistic marketing concept for the The geological-mineralogical and economic potential of the Zambian emerald fields is sufficient to justify production. such a commitment.

Zimbabwe Steady production of at least 60 kg of mixed-grade R EFERENCES rough emeralds per month has been achieved since Giard D. (1998) Les émeraudes de la vallée du Panjshir. In the mid-1990s (Zwaan and Kanis, 1997). Although it D. Giard, G. Giuliani, A. Cheilletz, E. Fritsch, and E. is difficult to give a precise estimate of reserves, ongo- Gonthier, Eds., L’émeraude, Association Française de ing exploration in the Sandawana area indicates that Gemmologie, Paris, pp. 177-184. current production can be maintained for many years. Laskovenkov A.F., Zhernakov V.I. (1995) An update on the Ural emerald mines. Gems & Gemology, Vol. 31, Madagascar No. 2, pp. 106–113. In general, emerald mining in the Mananjary region is Lau W. (1998) New finds in Brazil boost production. very costly, due to the lack of a stable infrastructure, News Asia, No. 169, September, pp. 160, 162, poor telecommunications, and expensive technical 164. maintenance. Systematic mining is also impeded by Milisenda C.C., Malango V., Taupitz K.C. (1999) the lack of capital and technical expertise. Edelsteine aus Sambia – Teil 1: Smaragd. Zeitschrift der Nevertheless, the emerald potential of this region is Deutschen Gemmologischen Gesellschaft, Vol. 48, No. 1, enormous (Petsch and Kanis, 1998). pp. 9-28. Petsch E.J., Kanis J. (1998) Gisements d’émeraudes de Pakistan Madagascar, région de Mananjary. In D. Giard, G. The Pakistani government, which has controlled the Giuliani, A. Cheilletz, E. Fritsch, and E. Gonthier, Eds., emerald industry for decades, has prevented the L’émeraude, Association Française de Gemmologie, Paris, development of modern and effective mines and mar- pp. 1173-1176. keting strategies. Increased production can only be Roditi M., Cassedanne J.P. (1998) L’exploitation des mines achieved when the following are achieved: reduction d’émeraude et leur context socio-économique au Brésil. of government interference, large investments of capi- In D. Giard, G. Giuliani, A. Cheilletz, E. Fritsch, and E. tal, and acquisition of sufficient technical expertise for Gonthier, Eds., L’émeraude, Association Française de the operation of modern large-scale mines. Gemmologie, Paris, pp. 157-163. Zwaan J.C., Kanis J. (1997) Update on emeralds from the Afghanistan Sandawana mines, Zimbabwe. Gems & Gemology, Vol. Mining activity in Afghanistan, including emerald 33, No. 2, pp. 80–99.

GEMS & GEMOLOGY FALL 1999 63 Review of Gem Localities in North America, Russia, and Southeast Asia

William Larson Pala International Fallbrook, California

ORTH AMERICA. Gem mining in North is known for its extraordinary “red flash” America has never been extensive, and typi- effect to strong light. Ncally has accounted for less than 1% of the The southwestern U.S. is one of the world’s largest global gem production. Nevertheless, over the years sources of turquoise. Numerous deposits in Arizona, the U.S. has produced more than 60 different colored Nevada, and New Mexico produce turquoise, some gemstones, mostly from relatively small, short-lived deposits. Some U.S. colored gem areas and deposits have been known for more than a century. Mining at Figure 1. Fine-quality tourmaline is still produced these deposits generally has been intermittent, howev- occasionally from pegmatites in Southern California. er, as new economic zones are found or older zones These pink, bicolored, and green stones from the are reworked. For example, the pegmatite district in Himalaya mine weigh 5.15 ct, 5.83 ct, and 3.77 ct, respectively. Photo © Tino Hammid. San Diego County, California, has been famous for its tourmalines since the 1890s (figure 1). Mines such as the Himalaya, Stewart, and Tourmaline Queen have enjoyed revitalization and supplied fine gem material over the past three decades. Since 1976 at the Himalaya mine alone, 10,000 feet (3,075 m) of underground tunnels have been driven, with about 2 tons of tourmaline recovered to date. The Little Three pegmatites, also in San Diego County, have produced spectacular spessartine and blue . The historic pegmatites in Maine (e.g., at Plumbago and Mt. Mica) have been mined sporadically in the same time frame and also have produced some fine tourmaline. Arizona produces several important gem minerals. Significant deposits of peridot are located on the San Carlos Indian Reservation, where magnificent gem rough up to 40 ct have been recovered, although most of the pieces are small. Nearby, fine andradite and “ruby”-colored chrome pyrope occur. The Four Peaks deposit, located in the rugged Mazatzal Mountains near Phoenix, has recently been reopened and is producing high-quality amethyst. Although the faceted stones are typically small, the

E-mail address: [email protected]

64 SYMPOSIUM PROCEEDINGS ISSUE Figure 2. Primitive mining techniques are still employed at the world-famous ruby mines of Mogok, Myanmar. Photo by William Larson.

of it magnificent but most of it of lower quality Russia. Since the dissolution of the Soviet Union in (porous, chalky but amenable to enhancement). Some 1991, exploration for, and mining of, colored gems in of the mines (e.g., at Morenci) still produce Russia has undergone tremendous changes. Most of malachite and azurite. Chrysocolla is obtained from the major activity has been in the Ural Mountains the Globe-Miami district. These copper minerals are where the mining of emerald and alexandrite (from continually being exposed during mining operations. mine dumps at Malysheva and Takovaya), as well as Other important gems presently being mined in the demantoid (at Karkodino mine) has resumed, in most U.S. include sunstone (feldspar) from Oregon; sap- cases with mixed results. Jadeite has been found at phire from two areas in Montana (the in situ Yogo three locations: the Polar Urals, Kazakhstan, and Gulch deposit and several alluvial sources in the west- Siberia. In the Lake Baikal area, pegmatites locally ern part of the state); and emerald from Hiddenite, contain abundant tourmaline. Only time will tell if North Carolina. Although recent emerald finds at these various deposits can be mined economically and Hiddenite have been encouraging, it remains to be whether their production will be significant to the seen whether this deposit can be mined economically. gem trade. Much scientific and media attention has been given to two rare gem materials that are unique to the United States: red beryl from Utah and benitoite Southeast Asia. The production of ruby, sapphire, from California. Extensive (and expensive) develop- spinel, and jadeite from historic areas in Myanmar— ment work by organized mining companies is cur- especially Mogok (figure 2)—is legendary. However, rently in progress at both of these deposits. the new production of rubies from Mong Hsu, in Elsewhere in North America, Mexico has been northeastern Myanmar, is likely the major gemologi- the source of fine amethyst and iridescent andradite, cal event of the decade in Southeast Asia, as it has but it is probably best known for beautiful from greatly increased the availability of rubies on the Querétaro. In the last few years, some extremely fine world market. Concomitantly, there has been a sig- opal has been produced, but in small quantities. nificant decrease in the production of sapphire from Although only a limited number of colored gems the Kanchanaburi district in Thailand, and production have been mined in Canada, British Columbia has from Laos and Cambodia is still affected by political been the world’s principal supplier of nephrite for turmoil. Vietnam has exciting potential. Its rubies are several decades. Alberta is the world’s only source of fabulous. The full significance of Vietnam’s spinel, “ammolite,” the nacreous outer shell layer of fossil aquamarine, topaz, and other gems has yet to be ammonites that can exhibit remarkable iridescence. determined.

GEMS & GEMOLOGY FALL 1999 65 Colored Stone Sources in Africa and Madagascar

Abe K. Suleman Tuckman Mines and Minerals Ltd. Arusha, Tanzania

RGUABLY, THE GREATEST SOURCE of geologically significant of which, from the viewpoint excitement in the world of colored gem- of colored gemstones, are found in the Mozambique A stones for the past half-century has been Orogenic Belt. This belt extends almost the entire Africa. This continent consists of 50 nations; 20 of length of the eastern part of Africa, from Madagascar these, as well as the nearby island nation of and Mozambique in the south to Ethiopia and Sudan Madagascar, produce gemstones. Much of Africa’s in the north. Most of the colored gemstone deposits land mass is composed of Precambrian rocks, the most are related to the Pan-African orogeny (i.e., a series of metamorphic events and associated mineralizations Figure 1. Tanzanite is one of the most important that occurred between 800 and 450 million years ago, gem materials discovered in the 20th century. This which were superimposed on the Mozambique Belt). crystal measures 4.4 cm high, and the oval brilliant As diverse and vast as the continent is, so too is weighs 10.08 ct. Courtesy of Barker & Co.; photo the colored gem potential. In order to predict this © Jeff Scovil. potential, as judged by the number of new gemstone discoveries, it is worthwhile to examine Africa’s recent gemological past. This continent, with all its inherent difficulties, has yielded amazing finds of: tanzanite in Tanzania (figure 1); tourmaline from Mozambique and Namibia; very fine aquamarine from Mozambique; and tsavorite from Kenya, Tanzania, and Mali. Further, the Southeast Asian dominance in ruby and sapphire is being challenged by Tanzania, Kenya, and Malawi. Alexandrite, cat’s- eye , and sapphire—in qualities that rival those from Sri Lanka—were recently discovered in the Tunduru area of southern Tanzania (figures 2 and 3). Mozambique has yielded spessartine garnet that is comparable to the “Mandarin” garnet from Namibia. Nigeria also has produced fine spessartine, as well as large amounts of pink, red, and bicolored tourma- line. Zambia and Zimbabwe are regarded as very important sources of fine emerald. More than ever, Madagascar demands close scruti- ny due to the sheer frequency with which new deposits are being discovered and the quality of the gems found. Sapphire in colors comparable to those from Kashmir are now mined near Ilakaka, in south-

E-mail address: [email protected]

66 SYMPOSIUM PROCEEDINGS ISSUE ern Madagascar. Madagascar is also the source of tour- maline, sphene, apatite, and various garnets. Emerald deposits have been found near Mananjary, and exten- sive deposits of dark blue sapphire have been mined near Diego Suarez. In the next decade, Madagascar will likely emerge as one of the most important col- ored gemstone sources in the world. However, Africa’s streets (or mountains) are not lined with gemstones. Africa is an example of extremes. The inherent difficulties, in most of the mining areas, defy the imagination. These include anarchy, inade- quate communications, difficult climatic conditions, poor infrastructure, insufficient finances, government red tape and arbitrary judgments, lack of technology and appropriate machinery, prevalence of malaria and other diseases, and in some areas warfare. As a result, Figure 2. This miner is digging for gem-bearing gravels at the foreign investments that are sorely needed Libafu in the Tunduru region of southern Tanzania. throughout Africa are difficult to obtain for colored Photo by Horst Krupp. gemstone mining. After discovery has been made, the systematic extraction of the gems presents another set of problems. Once the easily accessible surface areas future gemstone wealth will depend on improve- have been worked, hand mining becomes difficult, ments in exploration and mining. And, although tenuous, and eventually uneconomical, at which time Africa is rich in colored gems, it is not likely that the area is abandoned. Restarting mining in a locality there will be an oversupply for extended periods of that has been desecrated by small-scale miners, even if time. New discoveries that yield superb stones are modern machinery and mining methods are used, is generally worked feverishly for a relatively short peri- usually economically unattractive. od of time and soon are exhausted. Thus, Africa will Africa will almost certainly yield more compelling be a reliable source of significant quantities of colored treasures in the new millennium, but the extent of its gemstones, but the supply will be erratic.

Figure 3. A stunning variety of gems have been recovered from the vast alluvial deposits in the Tunduru region of southern Tanzania. The gemstones shown here consist of sapphires, spinel, chrysoberyl, and garnet (approximately 0.5–2 ct). Courtesy of Horst Krupp; photo by Shane F. McClure.

GEMS & GEMOLOGY FALL 1999 67 Colored Stone Distribution

Will There Be Another Chance For Business in the Asian Colored Stone Jewelry Market?

Yasukazu Suwa Suwa & Son, Inc. Tokyo

INCE THE ASIAN COLORED STONE markets Recent History: peaked in 1990, poor economic conditions Gradual Growth, Drastic Decline S have caused them to stagnate. In particular, the Figure 1 shows Japan’s gem and jewelry imports currency crisis that originated in Thailand in 1997 has between 1965 and 1998. Total imports of US$35 severely damaged the economies of the area. This million in 1965 increased by over 100 times to just abstract will investigate past and present market con- under $4 billion by 1990. It is noteworthy that the ditions, particularly in Japan, and present ideas for Japanese market, which 30 years earlier had account- reviving the market from a global viewpoint. ed for just a few percentage points of world jewelry

Figure 1. The Japanese jewelry industry experienced extraordinary growth from 1985 to 1990. Since 1995, however, the economic crisis in Japan has resulted in drastic declines in imports of jewelry and especially loose diamonds and colored stones.

68 SYMPOSIUM PROCEEDINGS ISSUE consumption, surpassed one-third of the world total by the early 1990s. During this same 25-year period, the exchange rate went from 360 to 144 yen per dol- lar, and per-capita gross domestic product increased from $993 to $24,164. These statistics illustrate how jewelry purchases rise as a society becomes more affluent. The increase in gem and jewelry imports between 1985 and 1990 shows the effect of the expansion of the Japanese market during the “bubble” economy—a period of low capital costs and an extraordinary appre- ciation of asset prices that lasted from 1986 to 1991. The exchange rate dropped from 144 yen per dollar in 1990 to 94 yen per dollar in 1995. Although Japan’s economy had already collapsed by 1995, over- Figure 2. A three-fold solution could help revive the all imports did not decrease up to that year because of demand for colored stone jewelry in Asia and worldwide. this stronger yen. Between 1990 and 1998, imports of ruby, sapphire, and emerald had decreased drastically, by 80%. Jewelry imports dropped only 27% between for reviving the market, not only in Asia but also on 1995 and 1998, compared to decreases of over 60% a global scale. Thus, treated gemstones must be clear- for diamonds and 70% for colored stones (other than ly disclosed as such when they are sold. It is of ruby, sapphire, and emerald) during that period. This paramount importance that we as an industry work was a result of sustained sales of branded jewelry by to increase confidence in our products. The Internet companies such as Cartier, Tiffany and Co., and will undoubtedly be a major force in the transforma- Bulgari. tion of the colored stone jewelry market. The Internet will facilitate the immediate, efficient, and Future Prospects accurate transfer of information. As a result, the value The future of the Asian market for gems and jewelry of jewelry as an asset will become even clearer, depends on the success with which these countries which will greatly enhance the appeal of these prod- change to a global-minded social structure. We need ucts. Since Internet business is not conducted face- to keep abreast of changes in the politics, economies, to-face, product confidence is especially important and societies of Japan, China, and other Asian coun- on-line. Increased product reliability will allow for tries. Since jewelry is a long-term, big-ticket pur- smoother Internet transactions. chase, consumer confidence is especially important In summary, a global-minded social structure, greater consumer confidence in gems, and the spread of Internet business are key to the revival of the col- E-mail address: [email protected] ored stone jewelry market worldwide (figure 2).

GEMS & GEMOLOGY FALL 1999 69 Snake Oil or Cedar Oil: Have Your Colored Stones Been Enhanced, and Are You Telling the Tale?

Gerald Manning Manning International New York

ARKETING COLORED GEMSTONES in • Jewelers Vigilance Committee: Fosters ethics and the United States requires a proper under- integrity in the jewelry industry. The JVC is the jew- M standing of the impact of consumer confi- elry industry watchdog. Violation of FTC guidelines dence and trust in our products. The two key ques- for consumer protection is a key concern for JVC. tions we must ask are: How do we foster and main- Fourth: Use gemological laboratories. Value tain that trust? How do we promote a positive image cannot exist without trust. The laboratory commit- to the consumer? Efforts made to answer these ques- ment to accuracy is, in many cases, the basis of trust— tions will yield a positive response from the con- and, therefore, a building block of “value.” sumer. Action in the following areas can go a long way toward addressing these concerns. Fifth: Avoid risky marketing strategies. Mass marketers and other large (and small) retailers often First: Participate in consumer education. ignore nature’s limited ability to produce gem materi- Responsible use of terminology regarding product als in the quality/clarity/color and quantity they seek. content and its effect on pricing is essential. Use Mass marketing requires product uniformity—often “friendly” language (see, e.g., AGTA’s [1999] in defiance of nature’s production limits. Some prod- brochure “Gemstone Enhancements: What You ucts sold by mass marketers—on television and other Should Know”). media—are susceptible to fraudulent substitution of synthetics or imitations for natural stones. Second: Don’t underestimate the power of negative press. The Diane Sawyer exposé “All that Sixth: Follow the FTC Guidelines. These are avail- Glitters” in her Prime Time Live segment (February able through the trade organizations or can be down- 1998) highlighted fraud in the jewelry industry: loaded directly from the Internet (www.ftc.gov). The “Buyer beware!” This negative press caused serious Guidelines specify the important differences between ripples in consumer confidence, resulting in a natural, synthetic, and imitation. Know the accepted fall-off in sales of emeralds, Native American jewelry, alternative language for these and other terms, as per- and other colored stones (both natural and synthetic). mitted by the FTC. For example, use pearl alone only if it’s a natural pearl. If it’s not natural, it’s a cultured Third: Use the trade associations. pearl, a simulated pearl, or an imitation pearl (again, see • American Gem Trade Association: Fosters respon- the Guidelines). Be aware of these potential abuses and sible promotion of colored gemstones, and provides be prepared to act when you see likely violations. information for the retailer to share with the con- Report them to the JVC. sumer. Also maintains a code of ethics, with manda- Consumers thrive on well-presented information tory member compliance. about colored stones and their enhancements. If you • American Gem Society: Provides marketing sup- market colored stones in the United States, learn the port for the retailer and information for the con- disclosure requirements and make them your own. sumer; maintains high membership/vendor standards. There is no avoiding responsibility if you fail to “dis- • Jewelers of America: Provides extensive market close.” There is significant liability for failure to do so, cooperation with other trade groups; furnishes mar- and it can be very costly. keting support for retailers and consumer education, with an emphasis on retail jeweler issues. E-mail address: [email protected]

70 SYMPOSIUM PROCEEDINGS ISSUE South America: The Birth of a New Jewelry-Consuming Market

Daniel André Sauer Amsterdam Sauer Rio de Janeiro, Brazil

ITHIN SOUTH AMERICA, the major sup- And because of the high investment risk involved in pliers of gems are Brazil and Colombia, gem mining, especially for colored gemstones, few Wwhereas the largest jewelry manufacturing and private domestic or foreign companies are now get- consuming markets are Brazil and Argentina, fol- ting involved in such ventures. With the exception of lowed by Venezuela, Chile, Colombia, Peru, and diamond, emerald, alexandrite, and Imperial topaz, Bolivia. which hold a higher intrinsic value, there are current-

Mining, Marketing, and Manufacturing in Brazil Figure 1. Imperial topaz has been mined in Ouro Preto, Brazil, for more than 200 years. The pink For years, Brazil has stood as the world’s major pro- topaz in the top ring weighs 5.35 ct, and the deep ducer of colored gems (in terms of gem varieties), “salmon”-colored topaz in the bottom ring is 7.08 ct; leading the production of Imperial topaz (figure 1), both are set with diamonds in 18K gold. Courtesy of aquamarine (figure 2), tourmaline, amethyst, and Amsterdam Sauer Jewelers —Brazil. , among others. However, a combination of factors has drastically reduced the country’s gem- mining activity in the last five years. The traditional garimpeiro (i.e., the folkloric independent miner, who is driven by dreams of hitting the jackpot) has guaran- teed the supply of most of Brazil’s gems for the last six decades. The Brazilian government has introduced new regulations for the working conditions of the garimpeiros, and the new constitution requires that the independent miners form cooperatives with strict environmental controls—and, thus, additional invest- ments for infrastructure. Today, most of the mining properties are con- trolled by mining companies or individual landown- ers. At this time, the landowners are giving priority to agricultural and cattle breeding activities over gem mining. Perhaps most importantly, gem prices have not kept pace with the rapidly increasing mining costs, so many mines have been forced to shut down.

E-mail address: [email protected]

GEMS & GEMOLOGY FALL 1999 71 ulation. Brazilian consumers have been buying durable goods as never before. The result was a growth in jewelry consumption of no less than 100%, in a four-year period, with Brazil’s jewelry market worth an estimated US$1 billion (including informal activities) in 1998. At the same time, modernization, increased productivity, quality-control programs and, most importantly, creativity, have transformed Brazil’s jewelry-manufacturing industry in less than five years. By 1998, the jewelry industry employed about one million people and consumed around 40 tons of gold. Most of the jewelry was manufactured by the 1,200 small and middle-size local domestic industries, but imported jewelry, mainly from Italy and Asia, also supplied the market. According to the World Gold Council, Brazil ranks as the world’s 12th-largest gold consuming country. Provided Brazil sustains its economic strength, the jewelry market will certainly continue to Figure 2. Brazil is noted for the fine aquamarine pro- grow there and in South America as a whole. duced there. These “rough” aquamarine beads Colombia (approximately 15 mm in diameter) provide a novel compliment to the baroque pearls and the 19.5 ct Colombia stands out as the world’s major producer of Nigerian tourmaline enhancer. Courtesy of Susan emeralds, with an estimated market value of $500 Sadler Fine Jewelry Design. million per year. Although the country lives in a con- stant struggle to overcome its internal problems, the emerald market has been an important economic and social activity for centuries. The historic mine at ly no organized gem-mining operations in Brazil. The Muzo is still the most important one for the quality of reduction in Brazil’s gem output is expected to last emeralds produced, but Coscuez is the most produc- indefinitely, unless new incentives are created or new tive one. New investments have been directed toward important discoveries are made—usually by accident, the Chivor mining complex. During the World as has historically been the case for most Brazilian Emerald Congress in Bogotá in 1998, important issues gems. such as methods of clarity enhancement, grading stan- On the brighter side, the Brazilian jewelry indus- dards, and certification were discussed, but these have try has been experiencing tremendous growth since yet to be resolved. The industry urgently awaits the July 1994, when a new economic stabilization plan establishment of new universally accepted procedures began. The drastic reduction of inflation was reflected to address these issues. It is the obligation of our trade immediately in the greater buying power of the pop- to restore credibility to this important gemstone.

72 SYMPOSIUM PROCEEDINGS ISSUE Pearl Sources

The Present and Future of Akoya Cultured Pearls

Shigeru Akamatsu K. Mikimoto & Co. Ltd. Tokyo, Japan

OR MOST OF THE 20TH CENTURY, toxic substance is widely used to cure disease at blow- Japanese Akoya cultured pearls dominated fish culturing farms, which are located within about Fthe pearl market. For decades, a strand of 300 m of the Akoya farms. Although it is difficult to Akoya cultured pearls (figure 1) has been a staple of prove a link between formalin and the Akoya oyster the jewelry wardrobe.

The Present Figure 1. Japanese Akoya cultured pearls are Pearl production in Japan has been declining since renowned for their attractive appearance and high 1992, because Akoya oysters have been dying in great luster. Photo courtesy of Mikimoto. numbers. In 1997, massive Akoya oyster deaths esca- lated to become a nationwide problem, as the pro- duction of cultured pearls dropped to less than one- third the usual 70 ton harvest. This has been com- pounded by a reduction in the quality of these pearls. There appear to be three main causes for the Akoya oyster mortality: red tide, formalin, and disease.

Red Tide. In 1992, a unique “red tide”— a sudden color change of the seawater, usually to red —killed many Akoya oysters in Ago Bay. Subsequent research brought the following facts to light: • The red tide was caused by a new phyto- plankton called Heterocapsa circulariscarma. • In several minutes, the plankton kills bivalves, such as Akoya oysters. • Agitating mud on the sea floor, where red tide plankton reside, can carry the plankton toward the ocean’s surface where they may multiply and cause the red tide. • At present we cannot prevent red tides, but we can predict them at least a week in advance and evacuate the oysters to safer areas.

Formalin. Formalin is a formaldehyde solution. This

GEMS & GEMOLOGY FALL 1999 73 deaths, pearl farmers strongly oppose the use of forma- lin from an environmental and food-safety standpoint, as well as for its possible effects on oysters. As a reme- dy, Japan’s Fishery Agency has recommended the use of a formalin substitute at the fish farms. The fish farmers have complied, and the situation is improving. Disease. Research eventually showed that a virus was a contributing factor in the Akoya oyster deaths. To counteract the virus, we are now taking the follow- ing measures: • Only healthy oysters are being bred. Figure 2. Japanese Akoya pearl farms such as this are struggling to maintain production despite widespread • Healthy oysters are kept in virus-free cul- oyster mortality. Photo courtesy of Mikimoto. turing tanks, and/or their sperm is pre- served in liquid nitrogen. • Infected oysters are eliminated whenever The Future and wherever they are found. Above all, Japan urgently needs to revive Akoya cul- • Every effort is made to avoid excessive tured pearl production (figure 2). New ideas and stress to the oysters. techniques must be implemented. If farmers continue to use the same techniques as they have in the past, Chinese Akoya Pearl Cultivation they cannot expect improvement. Full-scale production of Akoya cultured pearls started In addition, to maintain the pearl industry’s pros- in China around 1983. Now, Chinese Akoya cul- perity, we have to educate consumers so they can tured pearls hold a solid position in the world pearl make intelligent choices. Globalization of the pearl market. At about 25 tons per year, China’s volume industry is imminent. Therefore, establishing a uni- today is about the same as Japan’s. Although Chinese versal standard for cultured pearls is critical. The time Akoya cultured pearls do not fully match the quality is right for the pearl industry to come together to dis- of their Japanese counterparts, they are widely export- cuss pearl nomenclature, manufacturing, and quality. ed as commercial merchandise. If Japan does not As president of the CIBJO (International Jewellery make the utmost effort to produce good-quality Confederation) Pearl Commission, I propose to hold Akoya pearls, Chinese Akoyas will probably drive such a conference next year in Kobe during the Japanese Akoyas out of the world market. CIBJO congress.

74 SYMPOSIUM PROCEEDINGS ISSUE Freshwater Pearls: New Millennium —New Pearl Order

James L. Peach Sr. American Shell Company and U.S. Pearl Company Camden, Tennessee

S WE APPROACH the new millennium, we Chinese freshwater pearls causing a lot of excite- find the world of pearls even more exciting ment. These cultured pearls are often called “pure A than at the turn of the 20th century, when pearls,” because typically there is no detectable Kokichi Mikimoto of Japan started culturing saltwa- nucleus, and concentric layers are evident through- ter shell-section Akoya pearls. During the 20th cen- out the pearl (see figure). tury, we have seen the development of South Sea As we prepare to enter the 21st century, the white and “gold” saltwater shell-section cultured Chinese pearl farmers are dominating the world pearls, the advent and demise of Japanese freshwater pearl market. Production of both mantle-section and mantle-section cultured pearls, and the rise of both shell-section cultured pearls in 1999 is expected to Polynesian saltwater shell-sectioned cultured pearls be between 800 and 900 metric tons, in sizes from 1 and, most recently, Chinese mantle-section freshwa- to 15 mm, with a wide variety of shapes and a broad ter cultured pearls. (The term mantle section refers to range of colors; this output is expected to increase to the mantle tissue used for pearl nucleation; such cul- 1,500 metric tons by 2005. Saltwater pearl farmers tured pearls are commonly referred to as “tissue are being challenged by the lower production costs nucleated.” The term shell section refers to the shell and enormous production capacity accomplished by bead that is commonly used to nucleate cultured the Chinese pearl farmers. pearls, commonly referred to as “bead nucleated.”) The new millennium will hold fantastic opportu- Freshwater cultured pearls, grown by both shell- nities for the consumer, as a larger variety of high- section and mantle-section techniques, are currently quality freshwater cultured pearls become available very important in world markets and are expected to at competitive prices. play an even greater role in the new millennium. Today, freshwater shell-section pearl culturing is occurring in China, Japan, and the U.S., although This mantle-section Chinese freshwater cultured pearl only the Chinese product is significant in the world (12 mm in diameter) has been sawn in half to reveal market. Commercially available shapes are primarily multiple concentric layers and no evidence of a nucleus. coin, rectangular, and square, but there is expecta- tion of considerable production of round shell-sec- tion pearls from China during the next 18 to 24 months. Freshwater mantle-section cultured pearls now hold the largest share in the world pearl market, with the advent of high-grade mantle-section

E-mail address: [email protected]

GEMS & GEMOLOGY FALL 1999 75 The Tahitian Cultured Pearl: Past, Present, and Future

Robert Wan Tahiti Perles Tahiti, French Polynesia

ROUND THE TIME that Westerners dis- government has targeted a value of some $300 million covered Tahiti in 1767, the black pearl had for those 8 tons of cultured pearls. Why such a big A already earned a reputation in Europe and change in price per ton? Simply because a new and elsewhere as the “pearl of queens” and the “queen of increasingly concerted effort is being made by the pearls.” It took some 120 years before the talents of government and the pearl-producing industry to cul- people were combined with those of nature to pro- tivate and export only the finest-quality Tahitian cul- duce what today is known as the Tahitian cultured tured pearls. On January 1, 1999, the government pearl (see figure). However, the first successes did not imposed new export classifications and regulations occur regularly until the late 1960s to early 1970s. aimed at ensuring that only a high-quality product Fortunately for Tahiti and the nearly 400 pearl farms enters the world pearl market. They effectively ban that operate there today, cultivation, harvesting, selec- the export of rejects and non-nacreous “pearls,” such tion, and promotion efforts have improved over the as calcite “pearls” and organic “pearls.” According to past 26 years. That is why exports of Tahitian cul- the government’s official definition, the Tahitian cul- tured pearls reached a record of more than 6 tons in tured pearl is one produced only from the black-lipped 1998, with a collective value of $134.5 million. oyster Pinctada margaritifera, variety cumingi, which is My personal opinion is that, ultimately, Tahitian the official oyster used on pearl farms in French cultured pearl production should be limited to a max- Polynesia. The new export regulations stipulate that imum of 8 tons yearly. It will probably reach that there are only four products of Tahiti’s official pearl level in another four to five years. When it does, Tahiti’s oyster that qualify for the label “Made in Tahiti.” They are the Tahitian cultured pearl, the Tahitian New government regulations ensure that only high- mabé, the Tahitian keshi and the Tahitian mother-of- quality Tahitian cultured pearls, such as those shown pearl. Note that the new regulations have not here, enter the world pearl market. Courtesy of GIE changed the export tax on loose Tahitian cultured Perles de Tahiti; photo by M. Roudnitska. pearls. Half of that tax still goes to the government, and the other half goes to Perles de Tahiti, a nonprof- it economic interest group that has done much to popularize the Tahitian cultured pearl in the gem, jewelry, fashion, media, and entertainment industries. Japan is our number one export market, followed by the U.S. and Hong Kong. However, the promo- tional efforts by Perles de Tahiti have opened new markets for Tahitianan pearl exports, such as Latin America, Spain, England, Austria, Germany, Belgium, Eastern European countries, and even Russia. The trade association also has increased activi- ty in existing markets, such as France, Italy, Switzerland, Canada, and the U.S. The producers and government alike are optimistic that demand will continue to grow for the fine-quality cultured pearl exported from Tahiti.

76 SYMPOSIUM PROCEEDINGS ISSUE Cultured South Sea Pearls

Andy Muller Golay Buchel Kobe, Japan

rief Historical Background For the period during Wold War II and immedi- In 1928, a team of Japanese, led by Dr. ately after, from 1941 to 1956, we found no recorded Sukeo Fujita, harvested the first cultured production of any significance. In 1954, however, B Kichiro Takashima established a South Sea pearl cul- South Sea pearls at Buton, Celebes (now called Sulawesi), in Indonesia. The team was financed by ture project in Burma (now Myanmar), and the first Baron Iwasaki of Mitsubishi Goshi-Gaisha of Tokyo regular harvests started in 1957. In 1956, another (better known today as Mitsubishi Corp.). Japanese pearling pioneer, Tokuichi Kuribayashi, From 1928 until the outbreak of World War II in started farming in Australia and harvested his first crop 1941, the project produced, on average, 8,000 to in 1958. During the 1960s and 1970s, various farms 10,000 cultured pearls per year. The majority of the opened in Australia, Indonesia, the Philippines, pearls cultivated at Buton were 8-10 mm in diameter, Malaysia, and Thailand. Nevertheless, we estimate with 12 mm being the rare exception. If we recall that in the early 1980s, the total marketable part of that during the same period Akoya pearls cultivated in these productions was around 95 kan, or a maximum Japan had an average diameter of 3–4 mm, there is of 100 kan (1 kan=3.75 kg). Since then, however, little wonder that these first South Sea pearls created development has been truly phenomenal. quite a sensation. Current Production Estimates How large is our industry today? We estimate that in 1999, the entire saltwater cultured pearl industry (i.e., Figure 1. South Sea pearls from Australia, Indonesia, organized pearl farms) will produce pearls worth and the Philippines represent almost half of the world approximately US$490 million (figure 1). White saltwater cultured pearl production estimated for 1999. South Sea cultured pearls are estimated to represent $217 million of this value, which translates into a market share of 44.4%; the major producers are Australia, Indonesia, and the Philippines (see table).

Main Characteristics by Country Australia • Australia produces almost half of the world’s white South Sea cultured pearls by weight, and almost two-thirds by value ($136 million).

Leading producers of cultured South Sea pearls (1999 estimates).

Country By weight (kan) By value (US$)

Australia 47.2% (450) 62.9% ($136.5 million) Indonesia 39.8% (380) 28.7% ($62.3 million) Philippines 10.9% (104) 7% ($15.3 million)

GEMS & GEMOLOGY FALL 1999 77 • Approximately 90% are cultivated along the northern coastal areas of Western Australia. • The Western Australian Pearling industry is well organized and efficient. Sixteen license holders share a total annual oyster quota of 572,000 (Pinctada maxima) shells fished from the wild, plus 350,000 propagated in hatcheries. • So far, these “hatchery options” have not been fully utilized. The first pearls cultivated from hatchery shells in Australia were harvested in 1998, but they represented less than 3% of the total. However, farmers have now begun to use these hatchery options, so they should start to have an impact in the market after the year 2000. • The official policy in Australia of limiting output by quota control, to keep the supply of cultured South Sea pearls from exceeding demand, is now under review and may change in the not-too- distant future. Figure 2. Note the warm “golden” color of these • South Sea pearls cultured in Australia are, on South Sea cultured pearls. Photo © GIA and average (at about 13 mm), the largest in the Tino Hammid. world. Their colors are more “,” white, and blue when compared to their counterparts from Indonesia and the Philippines. • Indonesian seawater temperatures are relatively • Pearl growth usually takes 24 months, with ini- stable (26º–30ºC, versus 18º–31ºC in Australia), tial seeding operations and harvests taking place which promotes regular, even growth, without during the cooler months of June, July, and Australia’s seasonal limitations. Because the oys- August. ters (and the pearls inside) usually grow faster, pearl growth periods can be shorter, between Indonesia 18 and 24 months, depending on location and • Unlike Australia, where production is concen- conditions. trated in one particular coastal area, the farms in • The pearls cultivated in Indonesia are smaller Indonesia are spread over the entire archipelago, (approximately 10.5–11 mm on average) than with the main concentration in the islands east of those from Australia. They tend to have a Bali to Irian Jaya. warmer color (see, e.g., figure 2), often with tints • The entire South Sea pearling industry relies of “champagne,” “cream,” yellow, “gold,” and entirely on Pinctada maxima oysters propagated in pink. The nacre is usually thick, and the pearls hatcheries. The fishing of wild pearl oysters ceased have a high luster. prior to the mid-1990s. • There are more than 50 farm sites in Indonesia, • Indonesia’s industry is not strictly regulated, and and it is estimated that more than 2 million oys- no quotas exist regarding the number of oysters ters will be seeded this year. that farmers can seed and breed. Also, the gov- • Indonesia has good future potential. Although ernment has not set any limit on the number of the production is still smaller than Australia in licenses it issues. terms of total value and weight, it has already surpassed Australia in terms of the number of E-mail address: [email protected] pearls it cultivates.

78 SYMPOSIUM PROCEEDINGS ISSUE The Philippines Some Thoughts for Today . . . • Similar to Indonesia, the government sets no And for Tomorrow limit on the number of licenses it issues, or on the The global breakthrough in hatchery technology for number of oysters to be seeded. farming the white-lip pearl oysters (Pinctada maxima) gave the biggest boost yet to this industry. Just 15 • A major breakthrough with hatchery technology years ago, the entire industry relied on oysters fished took place over the past three years, and the in the wild. This year, more than 80% of the world’s industry is developing fast nowadays, mainly white-lipped South Sea oysters seeded for pearls were using propagated Pinctada maxima oysters. propagated in hatcheries. • In the past, most farms were spread throughout At this writing, the Australian cultured pearl a wide area, mainly in the south. Today, how- industry is being reviewed, especially in light of a ever, the largest farms are located on the south- “competition policy.” The issues are extremely com- western island of Palawan, which has become plex, and it will probably take a few years for deci- the largest pearl-producing area in the sions to be made and potential new laws to be imple- Philippines. mented. Regardless of the outcome, Australian pro- • The pearls cultivated in the Philippines resemble duction will continue to increase, especially after the their counterparts from Indonesia. They are rela- year 2000, when the pearls cultivated in propagated tively small, have a thick nacre, and usually show oysters will reach world markets. a good luster and a warm color. Indonesia has great potential, but production is more difficult to forecast. One of the many reasons is • The largest farm reportedly seeded over 200,000 that its harvests are susceptible to ocean conditions oysters this year. Smaller farms are seeding such as “El Niño” or “La Niña,” and they may be between 20,000 and 50,000 oysters. The total disrupted by earthquakes and tidal waves. The indus- number of oysters seeded is most likely in excess try suffered heavy setbacks in the 1980s and 1990s. of 500,000. Some of the largest producers of the past are practical- ly out of business today. Meanwhile, others have Others emerged and the industry is again prospering. The White South Sea pearls also are cultivated in coun- Philippines, Myanmar, and Thailand are also on an tries such as Malaysia, Vietnam, Myanmar, and expansion course. Thailand. Myanmar and Thailand are progressing While the past century belonged to the Akoya steadily, and it is possible that their annual produc- cultured pearl, there is little doubt that pearls cultivat- tion will reach between 30 and 70 kan each within ed in the South Seas will dominate saltwater pearl five years. production in the new century.

GEMS & GEMOLOGY FALL 1999 79 Gem Identification

The Ongoing Challenge of Diamond Identification

James E. Shigley GIA Research Carlsbad, California

EWELERS FACE LEGAL AND ETHICAL ored diamonds). Diamonds with cleavages that have requirements to disclose information on the been filled with a -like material can be recognized Jidentity of the gem materials that they sell by the distinctive interference (“flash”) colors displayed their customers. These requirements presuppose by the filled areas, which can be observed with magni- that the gems can be identified, either by the jewelers fication (see, e.g., McClure and Kammerling, 1995). themselves or by laboratories that support the jewelry Diamonds with a surface coating often exhibit an trade by issuing gem identification reports. unusual color or appearance, one that is not consistent The past decade has witnessed the continued with their other gemological properties. Colored dia- introduction of diamond treatments, synthetic dia- monds that have been treated by exposure to radiation monds, and even a significant new diamond simu- and/or heat usually require examination with advanced lant—synthetic moissanite—into the jewelry trade. analytical equipment to detect evidence of treatment. Jewelers must become aware of the existence of these Since exposure of a diamond to radiation and/or heat new treatments and materials. They also must learn can take place in the earth, it is not always possible to which standard gemological testing instruments and distinguish if a particular diamond has been treated. techniques are most helpful in their identification, and at what point they should turn to a gemological labo- Synthetic Diamonds ratory for assistance. Synthetic diamonds, usually in small sizes and typical- ly brownish yellow (but sometimes blue, red, and— Diamond Treatments rarely—near-colorless), occasionally are encountered The diamond treatments most commonly encountered in the jewelry trade. For the most part, the synthetic include methods to improve apparent clarity, such as diamonds that we have seen in the trade have been cleavage- or fracture-filling (widespread occurrence) or produced in Russia or the Ukraine. Cuboctahedral coating (rarely seen), and to enhance color using expo- crystals up to a few carats (although usually less than 2 sure to radiation and/or heat (seen among some col- ct) can be grown from a molten metal alloy at high

Figure 1. Among the distinctive characteristics of colored synthetic diamonds are unusual color zoning (left and center) and a cross-shaped fluorescence pattern (right). Photomicrographs (left to right) by Shane Elen (magnified 20×), John I. Koivula (25×), and Taijin Lu (2.5×).

80 SYMPOSIUM PROCEEDINGS ISSUE Figure 2. Synthetic moissanite can be readily separated from diamond by its doubly refractive optic character, as revealed by the doubling of the facet junctions as you look through the stone (left). Synthetic moissanite also may contain distinctive tube-like or flat, reflective plate-like inclusions (right). Photomicrographs by Shane Elen, mag- nified 15×.

temperatures and pressures. These growth conditions orescence, and—often—electrical conductivity (see, give rise to the distinctive gemological properties of e.g., Nassau et al., 1997). The fact that synthetic synthetic diamonds (figure 1). Faceting of these crys- moissanite is now available in greater quantities and is tals yields polished synthetic diamonds that typically being distributed worldwide means that jewelers weigh less than 0.50 ct, and often have a modified could encounter it more frequently in the market- square shape to retain weight (or are fashioned as place. Therefore, knowledge of these identifying fea- even smaller round brilliants). For polished synthetic tures is critical. diamonds, the distinctive properties include uneven color zoning, intersecting graining, metallic inclusions What the Future Holds (resulting sometimes in attraction of the synthetic In the future, it is likely that new methods for treating diamond to a magnet), uneven ultraviolet fluores- diamonds will be developed or become more promi- cence (often stronger to short-wave in comparison to nent, such as the new high pressure/high temperature long-wave UV), and—for near-colorless material— treatment that reportedly removes or alters color. prolonged phosphorescence. The identification of [Editor’s note: see the article in this issue on GE-pro- synthetic diamonds can be confirmed by advanced cessed diamonds for further information.] Synthetic spectroscopic and chemical analysis methods. (For diamonds will continue to be produced, but high further information on the identification of synthetic costs and the restricted availability of synthesis equip- diamonds, see Shigley et al., 1995, and the articles ment are likely to limit the number, sizes, and quality cited therein.) of synthetic diamonds and keep prices high. Jewelers will need to stay informed about technological devel- Diamond Simulants opments in diamond treatment and synthesis, as well Near-colorless synthetic moissanite currently presents as current gem-testing methods, to fulfill their respon- an identification problem because standard thermal sibilities to their customers. probes (used to distinguish diamond and imitation materials such as cubic zirconia [CZ]) will often mis- takenly identify synthetic moissanite as “diamond.” R EFERENCES However, synthetic moissanite can be separated by its non-isotropic optic character (when examined with McClure S.F., Kammerling R.C. (1995) A visual guide to magnification looking through the sample, facet junc- the identification of filled diamonds, Gems & Gemology, tions will appear “doubled”; see figure 2, left), strong Vol. 31, No. 2, pp. 114–119. absorption of light at the blue end of the visible spec- Nassau K., McClure S.F., Elen S., Shigley J.E. (1997) trum, lower specific gravity, unusual needle- or plate- Synthetic moissanite: A new diamond substitute. Gems & Gemology, Vol. 33, No. 4, pp. 260–275. like inclusions (figure 2, right), lack of ultraviolet flu- Shigley J.E., Fritsch E., Reinitz I., Moses T.E. (1995) A chart for the separation of natural from synthetic dia- E-mail address: [email protected] monds. Gems & Gemology, Vol. 31, No. 4, pp. 256–264.

GEMS & GEMOLOGY FALL 1999 81 The Identification of Ruby and Sapphire

Kenneth Scarratt AGTA Gemological Testing Center New York

HETHER A RUBY OR SAPPHIRE is being ance, and crystals with a melted or “snowball” bought, sold, or appraised, the fact that it appearance (figure 1) are good indicators of heat Whas or has not been enhanced by heat may enhancement. However, perfectly formed feathers make anything from a minor to a major difference in and crystals point toward an unenhanced stone. its value. Hence, today one of the key trade concerns Some absorbance observations also may assist in upon reading a laboratory report is whether a deter- determining enhancement by heat (see, e.g., Schwarz mination has been made of the heated or unheated et al., 1996). Similarly, some heat-treated stones have nature of a ruby or sapphire. In all treatments, the distinctive fluorescence reactions, such as the chalky gem world is also moving closer to fully implement- appearance of some heat-treated blue sapphires when ing a “Total Disclosure” policy, and so beyond the exposed to short-wave ultraviolet radiation. pricing factor may soon lie a very strong moral, if not legal, reason for requiring such a determination. Diffusion of Surface Color and Asterism Several factors are of critical concern in the identi- The most common color produced in “surface-color fication of ruby and sapphire, including: how to diffused corundum” is blue, but other colors, such as determine enhancement by heat, residues from the orange and red, also may be seen. The simplest iden- heating process, glass and other fillings, color and tification technique is to examine a suspect stone over asterism surface diffusion, and synthetic rubies and a white diffuser plate, so that color concentrations will sapphires. Given that today all major gemological be observed at facet junctions if the stone is surface- testing laboratories enlist advanced technology for color diffusion treated. More definition is gained if identification procedures, it is also important to the stone is immersed in methylene iodide. understand the information provided by ultraviolet- Using standard gemological microscopic tech- visible and infrared spectrometers, energy-dispersive niques, but particularly with overhead reflected light, X-ray fluorescence (EDXRF) chemical analysis, and the phenomena that cause surface-diffused asterism laser Raman microspectrometry. will be observed only in a layer near the surface of the stone, not throughout the stone as would be the case Enhancement by Heat for a natural star sapphire or ruby. The appearance of silk may help in the determination process; that is, the presence of unaltered silk will Glass in Cavities and Open Fractures, and indicate that the stone has not been heated. In blue Residues within Essentially Closed Fissures sapphire, internal diffusion of blue color in areas that Either by design or by accident, glass may be deposit- were once occupied by individual rutile needles indi- ed in open fractures and/or surface cavities during the cates that the stone has been heated. “Silk” formations heat treatment of rubies (and sometimes sapphires). It composed of oriented fine “dust-like” inclusions also is important to disclose the presence of such glass on may indicate heat treatment for stones from certain laboratory reports and to any potential purchaser of a localities, such as Sri Lanka. stone. For the most part, the presence of glass is The appearance of included crystals and feathers revealed by its surface luster (figure 2), which is differ- also may help. Feathers that are composed of “bubble- like” formations, or have an overall “glassy” appear- E-mail address: [email protected]

82 SYMPOSIUM PROCEEDINGS ISSUE ent from that of the ruby host. When making such observations, however, one should be aware of other possible causes for such differences in surface luster, for example, where natural unaltered or even altered inclusions have been exposed at the surface during the polishing process. Following heating, various residues may be dis- covered within fissures; in these cases, no differences will be seen in surface luster, and their presence is Figure 2. Note the difference in luster between the revealed only by internal inspection. Most major lab- glass-filled fracture and the host ruby. Photomicrograph oratories will reveal the presence of such residues, and by Kenneth Scarratt. some quantify the amount using such terms as minor, moderate, and significant. the dark or blue zones expected in unheated rough Separation of Natural from Synthetic Gems material from Mong Hsu. The chance of error Twenty years ago, the separation of natural ruby and increases when the synthetic has been “manufac- sapphire from their synthetic counterparts was not tured” to resemble the external appearance of the complicated by such practices as heat enhancement, Mong Hsu material. which can significantly alter the appearance of natural Certain inclusions within a synthetic ruby or sap- inclusions. There also were fewer processes used to phire can be very helpful in the identification process, manufacture synthetic rubies and sapphires. such as platinum platelets and bright orange flux. Nevertheless, certain identification principles still Growth phenomena such as the undulating structures apply; for example, the presence of curved growth seen in hydrothermally grown synthetic rubies and lines in ruby or curved color banding in sapphire is a sapphires also are very distinctive, as is the presence of sure indicator that the stone is of synthetic origin. a partial seed plate. However, experience in viewing all the different Identification becomes increasingly difficult when kinds of inclusions likely to be present in natural and there are no inclusions or those present have an synthetic rubies and sapphires is essential if the gemol- unusual appearance. Raman analysis of inclusions may ogist is to avoid errors such as mistaking the “melted” positively identify the material and, on the basis of inclusions in a heat-treated Mong Hsu ruby for the that information, allow identification of the host. flux inclusions of a synthetic. It can be equally as cost- When there are no inclusions, or Raman does not ly to mistake the dark or blue zones sometimes pre- produce the needed information, then chemical anal- sent in a synthetic ruby manufactured by Chatham for ysis by EDXRF may reveal the presence of trace ele- ments that are indicative of one of the synthetics or a natural source. Figure 1. Snowball-like inclusions, here surrounded by UV-visible spectroscopy also may be useful in the a stress fracture, are commonly seen in heat-treated sap- identification of sapphire, especially the geologic ori- phires. Photomicrograph by Kenneth Scarratt. gin of a natural stone. When this information is com- bined with trace-element data and a detailed knowl- edge of inclusion scenes from different localities, it may not only identify the natural or synthetic nature of the stone, but it may also provide information on the geographic locality of the natural material or the manufacturer of the synthetic.

R EFERENCE Schwarz D., Petsch E.J., Kanis J. (1996) Sapphires from the Andranondambo region, Madagascar. Gems & Gemology, Vol. 32, No. 2, pp. 80–99.

GEMS & GEMOLOGY FALL 1999 83 Distinguishing Natural from Synthetic Emeralds

Karl Schmetzer Research Scientist Petershausen, Germany

ARIOUS NONDESTRUCTIVE METHODS are cence or electron microprobe analysis. Absorption applied to distinguish natural from hydrother- spectroscopy in the visible and ultraviolet ranges can V mally or flux-grown synthetic emeralds. detect the presence or absence of color-causing transi- Microscopic examination is used to determine the tion metals such as chromium, vanadium, iron, nick- presence or absence of solid, fluid, and/or multiphase el, and copper. Infrared spectroscopy can reveal the inclusions, as well as for the determination of diagnos- presence or absence of different types of water tic growth patterns and color zoning. Inclusions can molecules and/or chlorine. be characterized further by laser Raman microspec- For most of these techniques, diagnostic properties trometry or by electron microprobe analysis. exist that are useful to separate natural from synthetic Chemical properties of the host material (and some- emeralds, but there are also areas of overlap. times inclusions) can be determined by X-ray fluores- Specifically, certain characteristic features are typical

Figure 1. These spectra were recorded by means of the energy-dispersive X-ray analysis system of an electron microprobe, for natural emeralds from Swat, Pakistan; Miku, Zambia; and Muzo, Colombia—as well as for the following synthetic emeralds: Russian flux-grown synthetic and Biron hydrothermal synthetic. Characteristic sodium and peaks were observed for the natural samples from Pakistan and Zambia; distinct amounts of chlorine are diagnostic for Biron synthetic emeralds.The peak positions (in keV) are Na-1.0, Mg-1.3, Al-1.5, Si-1.7, and Cl-2.6.

84 SYMPOSIUM PROCEEDINGS ISSUE for either natural or synthetic emeralds if present, but their absence is of no unequivocal diagnostic value. The presence of distinct amounts of sodium and magnesium, for example, is useful to characterize natural emeralds from numerous sources (figure 1). The presence of these elements can be determined by wavelength- or energy-dispersive X-ray fluorescence analysis or electron microprobe analysis, but natural emeralds from some sources — such as some Colombian or Nigerian stones — contain only very low amounts of sodium and magnesium. Thus, the sodium and magnesium values of these natural emer- alds overlap those of their flux-grown and hydrother- mal synthetic counterparts (again, see figure 1). Figure 2. This energy-dispersive X-ray spectrum The presence of distinct amounts of chlorine — as of a Biron hydrothermal synthetic emerald was determined by X-ray fluorescence, electron micro- recorded by means of an electron microprobe; the probe analysis (figure 2), or infrared spectroscopy—is sample reveals a characteristic chlorine content as used to characterize hydrothermal synthetic emeralds well as almost identical amounts of vanadium produced in China or Australia (Biron). An absence and chromium. The presence of both color-causing of chlorine, however, is known not only for natural trace elements, vanadium and chromium (here, at emeralds from various sources, but also for flux- 5.0 and 5.4 keV, respectively), is typical for this grown synthetic emeralds and for some other synthetic emerald grown in Australia, although hydrothermal synthetic emeralds (e.g., produced in vanadium and chromium may also be seen in Russia or in Austria [Lechleitner]). Colombian emeralds. The presence of certain trace elements, such as molybdenum, is useful to characterize some flux- grown synthetic emeralds (e.g., Chatham, Gilson, and Zerfass). However, no residual molybdenum com- some alkali-related water. For this group, which con- pounds are found in natural emeralds, in hydrother- sists of Russian and Lechleitner hydrothermal syn- mal synthetic emeralds, or in flux-grown synthetic thetic emeralds as well as low-alkali-bearing natural emeralds that are produced in molybdenum-free flux emeralds—such as those from Colombia or compositions, as is the case for samples grown in Nigeria—identical water absorption bands may be Russia from lead vanadate solvents. measured in the infrared. For natural emeralds with An even more complex pattern of overlap is higher amounts of alkali-related water molecules, observed for other features, such as water-related the infrared spectra again are diagnostic for natural infrared absorption bands. No water is present in flux- emeralds. grown synthetic emeralds. Absorption bands of water Consequently, a combination of techniques is molecules that are not related to alkali ions (such as sometimes necessary to determine unequivocally lithium and sodium) are observed for some whether an emerald is natural or synthetic. In general, hydrothermally grown synthetic emeralds, such as gemologists in the major laboratories must decide, Linde and Biron. However, some natural and after microscopic examination and standard gemolog- some synthetic samples contain comparable amounts ical testing, which additional techniques must be per- of water molecules not related to alkalis, as well as formed to determine the origin of a sample.

GEMS & GEMOLOGY FALL 1999 85 Identification Challenges of the New Millennium

Shane F. McClure GIA Gem Trade Laboratory Carlsbad, California

NE OF THE MOST INTERESTING things about limeter thick, the back is usually filled with plastic to working in a gemological laboratory is the keep the jadeite from breaking. We also have seen O opportunity to see the most challenging new large cavities in bangle bracelets that have been filled developments in gemology—often before they are with a plastic mixed with a speckled green material— seen by almost anyone else in the field. This discus- so the filler blends in with the rest of the bracelet. sion presents a few of the more interesting or signifi- Several pieces of dyed green jadeite submitted to the cant items that have recently come through the GIA laboratory did not show the characteristic absorption Gem Trade Laboratory. spectrum used to detect the dye. In addition, we have seen very believable imitations of fine jadeite, such as Jadeite Jade dyed (figure 1). Because of the demand for fine-quality jadeite and its rarity, jadeite is treated in many different ways to Imitation Tanzanite make the most of what little material is available. We recently examined an excellent new tanzanite Small carvings of dark green, nearly opaque jadeite imitation. The material is synthetic forsterite, a miner- are hollowed out from the back so that they appear to al in the olivine group, which has been doped with be a pleasing (and more salable) lighter green. Because cobalt. Its appearance is very similar to tanzanite, the walls of these carvings may be less than one mil- including the strong pleochroism characteristic of that material. However, synthetic forsterite is easy to sepa- rate from tanzanite based on its gemological proper- Figure 1. Quartzite can be dyed to imitate fine ties (especially the refractive indices, 1.635 –1.670 for jadeite, as illustrated by these 8 mm beads. Photo forsterite as compared to 1.69–1.70 for tanzanite). by Maha DeMaggio. Zachery-Treated Turquoise This proprietary turquoise treatment reduces the natu- ral porosity of turquoise, so that the treated material will take a better polish than untreated material and will not discolor by absorbing foreign materials such as oils. It also can darken the color of the material. Extensive testing has not detected the presence of any polymers or other foreign materials within the turquoise after treatment. One indication of treatment

E-mail address: [email protected]

86 SYMPOSIUM PROCEEDINGS ISSUE seen in some of the stones that had improved color was blue concentrations along fractures. However, a higher-than-normal potassium content is the only way at this time to identify the treatment conclusively.

Diffusion[?]-Treated Topaz Blue-to-green topaz that reportedly derives its color from diffusion treatment has been available for several years now. Whether or not this treatment is actually a diffusion process has not yet been proved, but it is significant to note that this material is substantially dif- ferent from the pink-, red-, and orange-coated topaz that has been on the market. The coatings that produce these other colors are temporary and will easily scratch off. The color layer of the “diffused” material has the same hardness as topaz and has been shown to be very durable. The color is produced by cobalt, and the stones often show an elevated R.I. (sometimes over the Figure 2. One of the newest synthetics on the mar- limits of the refractometer). This treatment creates an ket is hydrothermally grown synthetic aquamarine. extremely thin color layer that can be detected easily The cut samples average approximately 1 ct. Photo by its spotty appearance in the microscope. by Maha DeMaggio.

Synthetic Aquamarine Hydrothermally grown synthetic aquamarine has refractometer), was very clean, and was visually iden- become commercially available during the last year, tical to peridot. Gemologically, this material is easy to and has been sold in Brazil as small calibre-cut goods distinguish from peridot because none of their prop- (figure 2). It appears that the quantities available are erties overlap. The greatest danger in this type of imi- small and the stones are easy to identify, as they have tation is when it is sold in the rough or mixed in with the characteristic chevron-like graining seen in many parcels of natural stones. hydrothermal products (figure 3).

Tsavorite A very significant new deposit of fine-quality tsavorite Figure 3. The presence of chevron-like graining has recently been found in southern Tanzania. Many proves that the host stone is a hydrothermal synthet- kilos of the material have been recovered, with the ic, in this case synthetic aquamarine. Photo- best of the stones being of the finest quality when fin- micrograph by Shane F. McClure; magnified 25×. ished. We discovered some very interesting graining patterns in one of the stones we examined. This graining consisted of parallel striations that were curved in such a way as to remind us of the swirl stri- ae often seen in glass. Fortunately, the stone had many other inclusions that proved its natural origin.

Glass Imitations We continue to see high-property glass represented as natural stones. The most recent incident was a green glass that was being sold as Chinese peridot. This glass had a very high refractive index (over the limits of the

GEMS & GEMOLOGY FALL 1999 87 Treatments

Identifying Diamond Treatments

Ilene M. Reinitz GIA Gem Trade Laboratory New York

IAMONDS CAN BE TREATED to alter their Clarity also can be altered by introducing a high- clarity or their color. Although modern tech- refractive index glass into surface-reaching fractures D nology has increased the number of treatments (fracture filling), which greatly reduces their visibility. to which diamonds may be subjected, most diamond However, since the glass does not match the refrac- treatments still can be detected through careful gemo- tive index of diamond at all wavelengths, a “flash logical observation and testing. effect” is seen when observing the diamond parallel to the plane of the fracture (McClure and Kammerling, Clarity Enhancement 1995). Non-surface-reaching fractures may be filled A common treatment used in the trade to improve through a drill hole, but the hole itself is usually too clarity is laser drilling. This technique creates access to wide to be concealed by this treatment. An unfilled a subsurface inclusion which, if it has not been vapor- drill hole disperses light around its edges, and may dis- ized by the laser beam, can then be dissolved by acid. play a subtle partial rainbow when observed perpen- Drill holes can be differentiated from natural etch dicular to its length, whereas a filled drill hole may channels by their appearance (Johnson et al., 1998). exhibit pinpoints of light showing various colors (fig- Specifically, drill holes are round in cross-section, ure 1). Knowledgeable observation with good light- whereas etch channels in diamond are square, triangu- ing and magnification of at least 10× is the key to lar, or hexagonal. identifying clarity treatments.

Figure 1. The laser drill hole and fracture in this 2.51 ct diamond have been filled with a high-refractive index glass. Note the various-col- ored pinpoints of light along the drill hole, and the pink- to-purple flash colors along the fracture. Photomicrograph by Vincent Cracco; magnified 63×.

88 SYMPOSIUM PROCEEDINGS ISSUE tic (Reinitz and Moses, 1997, 1998). The origin of color in some green diamonds—and, on rare occa- sions, some diamonds of other hues—cannot be determined as being either natural or treated. In rare instances, diamonds are coated to produce a fancy color; more frequently, they are coated to make a pale yellow or brown diamond look more colorless. Coating techniques vary from the common- place (such as fingernail polish) to the highly sophisti- cated (such as sputtered metals; see figure 2). To date, all coatings can be identified by careful observation with 10× or higher magnification, using a variety of lighting conditions, especially diffused transmitted Figure 2. A sputtered-metal coating—visible here in light and reflected light. diffused transmitted light as indistinct dark spots—has The release of GE-processed diamonds onto the been applied to the pavilion of this 2.02 ct diamond. market has provided the most recent—and perhaps Photomicrograph by Nick DelRe; magnified 63×. most significant—identification challenge for gemol- ogists (see report in this issue of Gems & Gemology, pp. 14–22). Color Enhancement Off-color diamonds are commonly treated to create a more attractive, saturated color. The most important R EFERENCES development in this area over the last decade is that Collins A.T. (1982) Colour centres in diamond. Journal of there is now substantial overlap in the color appear- Gemmology, Vol. 18, No. 1, pp. 37–75. ance of natural and treated diamonds, especially for Johnson M.L., Schwartz E., Moses T.M. (1998) When a yellow, greenish yellow, and pink hues. Most color drill hole isn’t. Rapaport Diamond Report, Vol. 21, No. treatments involve irradiating and/or heating the dia- 45, pp. 1, 19, 21, 23, 25-26. mond to create various color centers (Collins, 1982). McClure S.F., Kammerling R.C. (1995) A visual guide to Some of these treatments produce a diagnostic distri- the identification of filled diamonds. Gems & Gemology, bution of the color (e.g., concentration at the culet), Vol. 31, No. 2, pp. 114–119. while detecting others requires careful analysis of a Reinitz I., Moses T. (1997) Gem Trade Lab notes: Treated- UV-visible-near infrared spectrum taken at low tem- color yellow diamonds with green graining. Gems & perature; luminescence reactions may also be diagnos- Gemology, Vol. 33, No. 2, p. 136. Reinitz I., Moses T. (1998) Gem Trade Lab notes: Diamond—Color treated from orangy yellow to reddish E-mail address: [email protected] purple. Gems & Gemology, Vol. 34, No. 3, pp. 213–214.

GEMS & GEMOLOGY FALL 1999 89 Fluxes and the Heat Treatment of Ruby and Sapphire

John L. Emmett JLE Associates and Crystal Chemistry Brush Prairie, Washington

HE DISCOVERY OF EXTENSIVE RUBY observations were mentioned in grading reports deposits in the Mong Hsu area of Myanmar (Hänni et al., 1998), and have initiated a serious T(Burma) has provided the marketplace with a debate on the use of flux in heat treatment and, in much-needed source of fine ruby in smaller sizes particular, what the presence of large amounts of flux (see, e.g., Hlaing, 1991; Henn and Bank, 1993; means in terms of the quality and durability of the Kammerling et al., 1994). Much of the ruby from this original ruby. location is characterized by blue or blue-black cores What is a flux? A flux is simply a material that is which generally are removed by heat treatment usually a solid at room temperature, but at high tem- (Peretti et al., 1995). The heat treatment is straight- peratures it becomes molten and is a solvent for min- forward: Temperatures of 900°C or above in an air erals and other inorganic materials. There are many atmosphere are usually sufficient to accomplish the types of fluxes in use, such as oxides, borates, silicates, desired change in color. When substantial quantities molybdates, and fluorides, as well as various combina- of Mong Hsu ruby began arriving at gemological lab- tions of these materials. For example, fluorides are oratories worldwide, new features were recognized often used to reduce the viscosity of other fluxes. that were soon identified as residual flux inclusions Fluxes based on borax (sodium tetraborate decahy- (Peretti, 1993; Milisenda and Henn, 1994). These drate) are widely used in Thailand for the heat treat- ment of ruby and sapphire (Abraham, 1982; Peretti et Figure 1. This 28 ct ruby from the John Saul mine al., 1995). in Kenya shows two glassy blebs that resulted from It has been stated that a flux is necessary to prevent heat treatment without flux. They probably repre- thermal-shock fracture of ruby and sapphire during sent the melting of micaceous inclusions, and could heat treatment (Robinson, 1995). Nothing could be easily be mistaken for residual flux. further from the truth. Natural ruby and sapphire are highly resistant to thermal shock fracture; much more so, in fact, than the ceramic crucibles in which the stones are placed, or the refractory materials of the furnace. Fluxes are used solely to enhance the appear- ance of lesser-quality material. In principle, a flux can have many functions. It can slightly dissolve the surface of ruby or sapphire, giving it a somewhat polished appearance. It can fill fractures that are open to the surface. It can match the average index of refraction of corundum, thus mask- ing fractures and other cavities. It can dissolve inclu- sions or staining in fractures that reach the surface. It can dissolve the amorphous layers that result from

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90 SYMPOSIUM PROCEEDINGS ISSUE aluminum hydroxide decomposition along parting planes. Finally, a flux can combine chemically with inclusions that melt out of a ruby or sapphire. Upon cooling, a flux can redeposit dissolved corundum (Hänni, 1997–1998; Hughes and Galibert, 1998), resulting in very limited re-growth, or it can simply solidify as a corundum-containing material. It cannot, however, completely re-grow corundum in a fissure, because the flux usually contains less than 20% dissolved corundum (Nelson and Remeika, 1964; Linares, 1965). The solidified flux can be a glass, a polycrystal, a single crystal, or all of these phases, depending on the final composition, viscosity, cooling Figure 3. This slice of a faceted, deep-diffused sap- rate, volume, and substrate. In addition, each of these phire shows the diffusion profile extending out from a phases can have a different chemical composition. “fingerprint”-like inclusion (bottom left) that reaches Although today fluxes are used routinely to heat the stone’s surface. The deep diffusion of this sample treat nearly all types of ruby and sapphire, determin- was performed by heating in a Ti-containing powder, ing that a flux has been used is not straightforward. which is the usual practice. However, a Ti-containing First, many fluxes are based on borates, and boron is flux theoretically could produce the same result with- out the surface damage caused by powder . not detected by the X-ray fluorescence (XRF) spec- trometers routinely used in gemological laboratories. Second, mineral inclusions may melt out of the potassium, or sodium. They apparently result from corundum during heat treatment, and these melt the melting of various micaceous mineral inclusions. droplets may appear very similar to flux deposits. The Given the wide compositional range of fluxes, the two glassy blebs on the surface of the ruby in figure 1 variety of inclusions that can melt and/or dissolve in a could easily be misidentified as flux. These glassy flux, and the variety of morphologies that result from materials are composed of the oxides of silicon, alu- the cooling of flux materials, the identification of a minum, and magnesium, sometimes with calcium, flux as a filling in fractures or cavities can be very challenging. In what may be yet another application of molten Figure 2. Color concentrations along facet junctions fluxes, we recently examined five fine sapphires of 3- are clearly visible in this deep-diffused sapphire that 5 ct each that we believed to have been deep diffused; has been immersed in methylene iodide. This yet they did not exhibit the color concentrations at uneven coloration—which is considered characteristic the facet junctions that are typical of this treatment of diffusion treatment—results primarily from the (Kane et al., 1990; see, e.g., figure 2). Note that this recutting and repolishing of the stone, not the diffu- facet outlining is an artifact of recutting and repolish- sion treatment. ing the sapphire, which was necessitated by the pit- ting of the surface that was caused by powder sinter- ing (Carr and Nisevich, 1975) during deep diffusion, and not the deep diffusion process itself. Prior to recutting and repolishing, the outlining of the facet junctions in deep-diffused gemstones generally is not visible even with immersion. We identified three of these stones as being deep diffused on the basis of the diffusion profiles seen on surface-reaching “finger- print” inclusions when they were viewed edge-on. Because dioxide—the material typically used for diffusion treatment—has a very high surface-diffu- sion rate on sapphire, it will propagate into any open

GEMS & GEMOLOGY FALL 1999 91 fissures and start diffusing into the bulk of the stone. mologischen Gesellschaft, Vol. 42, No. 2/3, pp. 63–65. Figure 3 shows a cross-section slice of a deep-dif- Hlaing U.T. (1991) A new Myanmar ruby deposit. fused sapphire with a fingerprint inclusion that Australian Gemmologist, Vol. 17, No. 12, pp. 509–510. exhibits the diffusion profile. This stone was deep dif- Hughes R.W., Galibert O. (1998) Foreign affairs: Fracture fused in the usual manner from a powder. In princi- healing/filling of Mung Hsu ruby. Australian ple, however, titanium could be diffused into sapphire Gemmologist, Vol. 20, No. 2, pp. 70–74. from a molten flux. This would avoid the surface pit- Kammerling R.C., Scarratt K., Bosshart G., Jobbins E.A., ting and thus eliminate the need for recutting as well Kane R.E., Gübelin E.J., Levinson A.A. (1994) as the facet outlining. This is what we believe was Myanmar and its gems—an update. Journal of done to at least three of the five stones that we stud- Gemmology, Vol. 24, No. 1, pp. 3– 40. ied. These observations suggest that careful examina- Kane R.E., Kammerling R.C., Koivula J.I., Shigley J.E., tion of fine sapphires is most prudent, even when Fritsch E. (1990) The identification of blue diffusion- there is no evidence of color concentrations at the treated sapphires, Gems & Gemology, Vol. 26, No. 2, pp. facet junctions. 115–133. Linares R.C. (1965) Properties and growth of flux ruby. R EFERENCES Journal of the Physics and Chemistry of , Vol. 26, pp. Abraham J.S.D. (1982) Heat treating corundum: The 1817–1820. Bangkok operation. Gems & Gemology, Vol. 28, No. 2, Milisenda C.C., Henn U. (1994) Neues Rubinvorkommen pp. 79–82. in Myanmar (Burma). Goldschmiede und Uhrmacher Carr R.R., Nisevich S.D. (1975) Altering the appearance of Zeitung, Vol. 92, No. 4, pp. 147–148. sapphire crystals. United States patent 3,897,529, filed Nelson D.F., Remeika J.P. (1964) Laser action in flux- December 15, 1969, issued July 29, 1975. grown ruby, Journal of Applied Physics, Vol. 35, No. 3, Hänni H.A. (1997–1998) Short notes on some gemstone part 1, pp. 522 – 529. treatments. Journal of the Gemmological Association of Hong Peretti A. (1993) Foreign substances in Mong Hsu rubies. Kong, Vol. 20, pp. 44–52. JewelSiam, Vol. 4, No. 5, p. 42. Hänni H.A., Kiefert L., Chalain J.P. (1998) Ruby. In Peretti A., Schmetzer K., Bernhardt H.J., Mouawad F. Standards & Applications, SSEF Swiss Gemmological (1995) Rubies from Mong Hsu. Gems & Gemology, Vol. Institute, Basel, Switzerland. 31, No. 1, pp. 2–26. Henn U., Bank H. (1993) Neues Rubinvorkommen in Robinson N. L. (1995) Thais get burned by glass filling. Myanmar (Burma). Zeitschrift der Deutschen Gem- Colored Stone, Vol. 8, No. 4, pp. 1, 13–14, 16 –18.

92 SYMPOSIUM PROCEEDINGS ISSUE Fissure-Filled Emeralds and Their Detection

Henry A. Hänni SSEF Swiss Gemmological Institute Basel, Switzerland

ISSURES AND FRACTURES IN GEMSTONES are more versatile than conventional infrared spec- commonly filled with various materials such troscopy for studying the molecular structure of Fas glass, wax, oil, or artificial resins to improve organic compounds. However, a problem arises their clarity. In the case of emeralds, fissure filling when fillers are analyzed within an emerald: Most of traditionally has been performed with organic mate- their characteristic features — at around 1600 cm−1 — rials. These fillings usually are visible with micro- cannot be detected because of the absorption inter- scopic inspection, or with UV radiation due to their ference from the host emerald. Fortunately, emeralds fluorescence. However, such observations need con- are transparent to infrared radiation in a second firmation by other methods. Identification of such spectral area, between 2800 and 3200 cm−1, from fillings is usually possible with infrared spectroscopy which characteristic features of organic substances or laser Raman microspectrometry. can be obtained. The FTIR technique can be At the SSEF Swiss Gemmological Institute, the applied in two modes (i.e., transmittance or diffuse analysis of fissure fillings is now routine. reflectance), depending on such considerations as the Identification of the filling is performed in three size of a stone and whether it is set in jewelry. steps: (1) optical (microscopic) examination, (2) Whichever FTIR technique is used, however, the FTIR analysis, and (3) Raman microspectrometry. analyzed volume of the sample is usually large For both the infrared and Raman techniques, the enough to cover several fissures. Therefore, this spectra obtained are compared to those of known (reference) materials. Figure 1. Multicolored flashes in emerald fissures often Microscopic Examination indicate clarity enhancement by an artificial resin. Photo A detailed study with the microscope generally allows ©SSEF Swiss Gemmological Institute. detection of the presence of a filler substance in the emerald and the extent of treatment. It also provides indications of the identity of a possible filler substance. Trapped air bubbles and dendritic patterns are a reli- able indicator of the presence of a filler. Another indi- cation is provided by “flash effects” along the fissure planes. While oil may create an orangy flash effect, flashes that show a change of color when the stone is viewed at different angles to the light source are typi- cally due to artificial resins (figure 1).

FTIR Spectroscopy Fourier-Transform Infrared spectroscopy (FTIR) is

E-mail address: [email protected]

GEMS & GEMOLOGY FALL 1999 93 “macro method” may enable the identification of multiple fillers when the emerald has been succes- sively filled with different substances.

Raman Analysis With Raman microspectrometry, the identification of organic fillers in emeralds is also feasible. Waxes, oils, and natural and artificial resins show distinct Raman spectra. The characteristic peak areas are between 1300 and 1700 cm−1 and from 2800 to 3200 cm−1. To obtain an analysis, the laser is focused into a narrow beam that is directed at a specific frac- ture (i.e., it is a “micro-analysis”). Complications Figure 2. The chemical properties of a filling sub- may arise with this technique if a stone contains sev- stance that has dried, as shown here, may be different eral substances, or mixtures of pure organic fillers, in from those of the original substance. Photo ©SSEF a single fracture filling. In such cases, it is necessary Swiss Gemmological Institute. to compare not only peak positions, but also peak intensity ratios. This enables the detection of admix- tures and, frequently, residual fillers from earlier hensive collection of reference spectra for known treatments. However, it may not be possible to materials is a necessity. Our laboratory maintains such identify decomposed filler materials (e.g., figure 2) a library and it is constantly being enlarged. In addi- with Raman analysis. tion, several Raman users, as well as equipment man- Because the successful identification of an organic ufacturers, are presently compiling databases of filler using either FTIR or Raman microspectrometry Raman spectra that will be of particular value to the depends on comparison to reference data, a compre- gemological community.

94 SYMPOSIUM PROCEEDINGS ISSUE An Overview of Gemstone Treatments

Kurt Nassau Nassau Consultants Lebanon, New Jersey

EMSTONES THAT ARE DEFICIENT in either radiation may occur naturally or in the laboratory, color or clarity can be enhanced by a wide with varying degrees of permanence. For example, Gvariety of treatments (Nassau, 1994). An esti- yellow and “padparadscha” sapphire, as well as yellow mated two-thirds of all colored gemstones used in to brown (“Imperial”) topaz, occur in both stable and jewelry today are enhanced, and the use of enhance- fading forms (sometimes even together in the same ments on diamonds continues to grow. sample), in both artificially irradiated and naturally Important factors to be considered in gemstone occurring material. enhancement are: (1) the permanence of the treat- Using equipment described by Nassau (1996a), a ment, that is, whether it is stable under normal condi- simple test can be performed to identify rapidly fading tions of wear and display (i.e., exposure to light—in materials (e.g., irradiated spodumene, grossular, and the absence of excessive heat—and repolishing); (2) green topaz, and some natural or irradiated yellow-to- whether the presence of the treatment can be identi- brown topaz and padparadscha sapphire). Care must fied by standard gemological methods; and (3) be taken to keep the temperature below 50°C to whether the treatment can be reversed, should one avoid heat destruction of color, a precaution that has wish to do so. been missing from some studies (Brown, 1993; The effect of the simple heat treatment of various Nassau, 1996b). Fading of both natural and enhanced gem materials is summarized in table 1 (top). All of the gemstones is also a problem for curators of gem and heat-treated materials in table 1 are stable, and most of mineral collections (Nassau, 1992). the treatments can be reversed. The effect of radiation treatments is similarly summarized in table 1 (bottom). Most of the irradiated materials are stable, and the R EFERENCES treatment can be reversed in most cases. Bates R. (1999) Diamonds: Mystery treatment announced. Table 2 summarizes other types of gemstone treat- Jewelers’ Circular Keystone, Vol. 170, No. 4, p. 19. ments under two categories: (1) bleaching, dyeing, and Brown G. (1993) Maxixe-type beryls: Ghosts from the filling techniques (top); and (2) other processes (bot- past. Journal of Gemmology, Vol. 18, No. 7, pp. 215–221. tom). Treatments in the first category generally are not Nassau K. (1992) Conserving light-sensitive minerals and stable (or their long-term stability is uncertain), and gems. In F.M. Howie, Ed., The Care and Conservation of none can be fully reversed except in unusual circum- Geological Materials, Butterworth-Heinemann, Boston, stances. Among the other treatments, the recently pp. 11–24. announced GE POL process (see, e.g., Bates, 1999) Nassau K. (1994) Gemstone Enhancement: History, Science, undoubtedly uses high temperature at high pressure to and State of the Art, 2nd ed. Butterworth-Heinemann, lighten the color of certain diamonds (see, e.g., Oxford, England, 252 pp. Nassau, 1994). Nassau K. (1996a) Fade testing: Has the time come? Many of the treatments in tables 1 and 2 can be Jewelers’ Circular Keystone, September, pp. 1116–1117. identified by standard gemological examination, but Nassau K. (1996b) On the identification and fade testing of many others cannot. Irradiated gem materials often Maxixe beryl, golden beryl, and green aquamarine. pose the greatest challenge, because the exposure to Journal of Gemmology, Vol. 25, No. 2, pp. 108–115.

GEMS & GEMOLOGY FALL 1999 95 TABLE 1. Simple heat and irradiation treatments. TABLE 2. Other treatments.

Gem material Change Result Stable?a Reversible? Process Gem material Stable?a Reversible?

SIMPLE HEATING BLEACHING, DYEING, FILLING Near-total to widespread use Near-total to widespread use Amethyst To yellow Citrine Yes Yes Bleach Chalcedony, coral, ivory, ?b No Beryl Green to blue Aquamarine Yes Yes pearl, petrified wood, tiger’s eye, and others Chalcedony Yellow to brown , , Yes No to red tiger’s eye, etc. Dye Agate, chalcedony, marble, ? No onyx, pearl, and others Corundum Develop, lighten, or Sapphire Yes Yes intensify blue Crack fill: colorless Emerald ? No oil/polymer Topaz To pink Pink topaz Yes Yes Impregnate: colorless Agate, chalcedony, lapis lazuli, No No Zircon To colorless or blue Zircon Yes Yes oil/polymer/wax turquoise, and others Zoisite To purple-blue Tanzanite Yes Yes Frequent to occasional use Frequent to occasional use Crack fill: colorless Diamond, ruby, sapphire ? No Amber Clarified, sun- Amber Yes No glass spangled Dye Amber, coral, ivory, jade, No No Corundum Develop or inten- Yellow sapphire, Yes No turquoise, and others sify yellow “padparadscha” Impregnate: colored Agate, chalcedony, jade, No No Corundum Develop asterism Ruby, sapphire Yes Yes oil/polymer/wax lapis lazuli, turquoise, and or remove silk others Ruby Remove “off” Ruby Yes Yes Rarely used shades Crack fill: colorless Ruby, sapphire, and others ? No Rarely used oil/glass/polymer Organics Age (darken) Amber, ivory Yes No Crack fill: colored Beryl, diamond, emerald, No No Remove “smoky” Greenish yellow Yes Yes oil/glass/polymer ruby, quartz, and others IRRADIATION OTHER PROCESSES Near-total to widespread use Frequent to occasional use Quartz To smoky, black Yes Yes Doublets, triplets Opal Yes No Topaz To blue Blue topaz Yes Yes Laser drilling of Diamond Yes No inclusions Frequent to occasional use Surface-diffused Ruby, sapphire No No Corundum Develop yellow Yellow sapphire, ?b Yes asterism and/or color “padparadscha” Diamond To blue, green, Colored diamond Yes Yes Rarely used yellow, or red Crackling Ruby, sapphire Yes No Pearl Darken Black pearl Yes No Crackle and dye Quartz No No Tourmaline Develop red Red, purple, and Yes Yes Doublets, triplets Any gemstone ? No multi-color Foil, mirror, and Any gemstone ? Yes Rarely used star backs Amethyst Partial change Amethyst-citrine Yes Yes High pressure/ Diamond ? ? Beryl Develop blue Blue (or green) No Yes high temperature Maxixe(-type) Reconstruction Amber Yes No Spodumene Develop green Green spodumene No Yes Surface color coating Amber, carnelian, diamond, No Yes Topaz Develop yellow Imperial topaz ?b Yes turquoise, and others to brown Synthetic overgrowth Emerald on beryl No No

aStable for normal wear and display, and to repolishing. aStable for normal wear and display, and to repolishing. bStable and unstable colors can both occur, even in the same sample. bStability not known.

96 SYMPOSIUM PROCEEDINGS ISSUE Antique & Estate Jewelry

Chaumet —A Very Parisian Jeweler

Diana Scarisbrick Author and Jewelry Historian London

HE 19TH CENTURY was a golden age for jewelers ing families of Rothschild and Fould, but even they everywhere, but particularly for those in Paris, were eclipsed by the scale of purchases from the Twho showed an extraordinary ability to create a suc- Russians, English, and Spanish, either as visitors or res- cession of new styles and techniques for the rest of the idents in the city. According to the Chaumet ledgers, world to copy. We are fortunate that the records of wealthy Americans—Colonel Thorn with six daugh- Chaumet—at 12, Place Vendôme—have survived ters to marry, Mrs. Bingham from Philadelphia, and intact. They provide a guide to this most creative Mrs. Henry Livingston II from “old New York”— period of jewelry history—the changing pattern of were now acquiring important collections of jewelry. designs, the emergence of new clients— and offer an explanation for Parisian preeminence. Figure 1. This circa 1910 Chaumet design for an Chaumet’s story begins with a father-and-son important diamond, pearl, and emerald corsage orna- partnership, M. E. and F. R. Nitot. Appointed court ment hanging from shoulder straps anticipated the jewelers to Napoleon Bonaparte before his corona- fashions of the 1920s. tion as Emperor in 1804, they were given the task of creating jewelry that would express his absolute authority. To this end, they supplied the magnificent tiaras, earrings, necklaces, brooches, and bracelets—set with diamonds, pearls, and fine colored stones—that transformed the ladies of the Bonaparte family into royalty. The Nitots’ mastery of the grand manner has never been surpassed, and it set the pattern for the rest of the century, when emblems of rank such as the tiara were a Chaumet specialty. In the next phase of French history, from the fall of Napoleon in 1815 to the declaration of his nephew as Napoleon III in 1852, the Nitots’ successors showed a similar genius for translating a new mood into jewelry. They turned their back on the imposing classical styles of the Empire and introduced diamond jewelry inspired by nature — garlands of wild roses, jasmine, hawthorn, and bulrushes — mounted on trembler springs for extra realism. At the same time, a passion for history led to “Gothic” and “Renaissance” types of gold and enameled jewelry which could be worn with daytime dress. Other jewels reflected religious faith, political involvement, sporting interests, and sentiment for family, friends, and lovers. The most important French customers were the women of the great bank-

GEMS & GEMOLOGY FALL 1999 97 Figure 2. John Rubel made this Art Deco-era Egyptian Revival brooch for Chaumet in 1924. The hunters, fash- ioned from ruby and emer- ald, stand on a pavéed dia- mond background; the onyx sides are gripped by lotus motifs. Courtesy of A. C. Cooper Ltd., London.

The patronage of Napoleon III and his wife, of ideas and techniques that gave the business its vital- Empress Eugénie, raised the jewelry trade to new ity. So, too, did the competition from other great heights. The Emperor encouraged the leading masters houses such as Bapst, Boucheron, and Mellerio, to participate in the International Exhibitions that which made Paris a buyer’s paradise—though Mrs. were held at regular intervals from 1851, and their Michael Herbert complained after visiting them all stands always drew huge crowds. So firmly that trying to choose a necklace for her sister Grace entrenched was Parisian supremacy that little changed Vanderbilt from such a wonderful array “was despair- after the exile of Napoleon III and the establishment ing work.” of the Third Republic in 1872. Thanks to improve- By this time Joseph Chaumet, who joined the ments in rail and steamship travel, more and more firm in 1875 and gave his name to it, was in charge. visitors were drawn to Paris not only from other parts Not only did he guide Chaumet through the glories of Europe, but also from North and South America. of the Belle Epoque, but he adapted to the challenge The Chaumet design albums record these purchas- of Art Deco (figure 2). After his death in 1928, his es , which show a strong preference for 18th century son Marcel weathered the difficult years of economic themes — flowers, leaves, ribbons, bowknots, and tas- depression and World War II. Marcel, in turn, was sels — executed in diamonds and precious stones. The succeeded by his two sons, who directed Chaumet quality was superb, each drawing a work of art in through the golden years that followed the peace of itself, and those pieces that have survived exhibit 1945. Chaumet International, now owned by an exemplary craftsmanship (see, e.g., figure 1). What international company, is managed by Pierre Haquet. kept standards so high? Clues are provided by the daybooks, which give every detail of client visits to the shop and their correspondence. Each jewel was F URTHER R EADING the result of a dialogue between the customer and the Scarisbrick D. (1995) Chaumet: Master Jewellers Since 1780. firm, and the customer required “something not yet Alain de Gourcuff, Editeur, Paris, and Chaumet known” that was compatible with the very latest cou- International. ture fashion. From the grandest tiara to the most Scarisbrick D., Hurel R. (1998) Chaumet: Two Centuries of modest brooch, everything had to have the stamp of Fine Jewellery. Catalog of an exhibition at the Musée Parisian chic, and it might be returned as “old-fash- Carnavalet, March – June 1998, Paris. ioned, clumsy, too dear” if it failed to please. Such Vever H. (1908) Histoire de la Bijouterie Française au 19ième criticism provided the spur for the constant renewal Siècle. H. Floury, Paris.

98 SYMPOSIUM PROCEEDINGS ISSUE Early 20th Century Jewelry

Elise B. Misiorowski Jewelry Historian Los Angeles, California

ADICAL CHANGES IN WESTERN SOCIETY (figure 1). Diamonds and natural pearls were the pre- during the early decades of the 20th centu- ferred gems, set predominantly in platinum, a new R ry are clearly reflected in the jewelry design metal for jewelry. This monochromatic look perfectly of the period. This evolution is evident in the specific complemented the pastel colors that dominated cloth- types of jewelry that were popular, how they were ing fashion. Diamonds from the recently discovered worn, the motifs used, and the gems incorporated. South African deposits were plentiful, as were pearls At the turn of the century, Western society from the Persian Gulf and Ceylon (now Sri Lanka). regarded jewelry as an outward expression of wealth, When colored gems were incorporated, they were and women of the upper classes wore an impressive always the finest and were set off by diamonds and/or amount, particularly on formal occasions. Evening pearls. Favored colored gems included amethyst, peri- jewelry often included a tiara, several necklaces, long dot, opal, turquoise, demantoid garnet, emerald, ruby, strands of pearls, brooches, corsage ornaments, and sapphire. bracelets, and rings. The garland style, using lacy, del- The 1910 Paris production of Scheherezade by icate motifs drawn from the decorative arts of the Ballets Russes had a profound impact on Western 18th century French court, was favored for jewelry society. Clothing design was immediately affected, as design by the wealthy women of the Edwardian era less-confining “harem dresses” in gauzy fabrics came

Figure 1. This lacy bow cor- sage ornament, which consists of diamonds set in platinum backed with gold, is typical of the garland style that was popular with the upper classes during the Edwardian era. It was made by Tiffany & Co. around 1900. Courtesy of the Neil Lane Collection, Beverly Hills, California. Photo © GIA and Tino Hammid.

GEMS & GEMOLOGY FALL 1999 99 and in the use of a strong primary color palette, we see the influence of the Ballets Russes resurfacing. Diamonds and platinum again were fashionable, now set to contrast with bold combinations of ruby, emer- ald, sapphire, black onyx, rock crystal quartz, jade, lapis lazuli, coral, amber, turquoise, or mother-of- pearl. Step-cut diamonds (introduced in 1915) ideally suited the geometric style of the jewelry, and colored gemstones carved in geometric shapes, as beads, or as stylized leaves and flowers were very popular. Cultured pearls, newly introduced, were more afford- able than natural pearls, thus causing a shift in market value for all pearls. Figure 2. The Art Deco period is well represented Jewelry, like clothing, was designed to emphasize by this flexible strap bracelet, with a repeating the vertical line. Evening dresses were sleeveless and Egyptian sphinx and pyramid motif, fashioned from cut low in front and back. Long strands of pearls or diamonds, rubies, emeralds, sapphires, and black beads, often terminating in pendants or tassels, were onyx set in platinum. It was made by Janesich, circa echoed by long, dangling earrings and long lapel 1925. Photo © GIA and Tino Hammid. brooches. Narrow, flat, strap bracelets in continuous geometric motifs outlined in calibrated colored gem- stones (figure 2) were worn in multiples on bare arms. into style, supplanting the long dresses over tight Jeweled cigarette cases and vanity cases came into corsets that had been the fashion. This softer, looser being, as women began to smoke and wear make-up clothing couldn’t support the heavy bodice jewels in public, and wristwatches were introduced as the that were previously fashionable, so they quickly modern way to tell time. went out of style. Jewelry became more compact, and Looking back, it is fascinating to see how eco- fewer pieces were worn at any given occasion. nomic fluctuations and developments in art, science, Platinum workmanship came into its own during this and technology all have had a direct impact on how period. Every surface of the finely fabricated platinum jewelry is worn at any given time in history, as well mountings was polished, embellished with exquisite as on what gems and materials are used. Knowing hand engraving or beaded with millgrain to add extra this gives us a definite perspective on current jewelry shimmer. Delicately sawpierced platinum plaques designs and allows us to speculate on future changes studded with gems were popular as pendants or that will certainly manifest themselves in the new brooches. Motifs for jewelry became more symmetri- millennium. cal and geometric, and natural subjects became sleeker and more stylized. Jewelry design was forgotten with the onset of F URTHER R EADING World War I and the Russian Revolution. The enor- Bennett D., Mascetti D. (1989) Understanding Jewelry. mous casualties of men between 1914 and 1918 drew Antique Collector's Club, Woodbridge, Suffolk. women into the workforce. As women accepted Nadelhoffer H. (1984) Cartier: Jewelers Extraordinary. Harry these new responsibilities, their attitudes, dress, and N. Abrams, Inc., New York. jewelry also evolved. Postwar women were more Proddow P., Healy D., Fasel M. (1992) Hollywood Jewels: pragmatic and independent, and their look was slim Movies, Jewelry, Stars. Harry N. Abrams, Inc., New York. and boyish, with cropped hair and shorter skirts. Rudoe J. (1997) Cartier: 1900 –1939. Harry N. Abrams, Designers revived the trend toward geometric pat- Inc., New York, and The Metropolitan Museum of terns in jewelry that began before the war, and also Art, New York. drew motifs from the Middle East and Asia. In this, Scarisbrick D. (1995) Chaumet: Master Jewellers Since 1780. Alain de Gourcuff Éditeur, Paris, and Chaumet E-mail address: [email protected] International.

100 SYMPOSIUM PROCEEDINGS ISSUE The Marketing of Period Jewelry During the 20th Century and into the Next Millennium

Joseph H. Samuel Jr. J.& S. S. DeYoung Inc. Boston, Massachusetts

E MUST FIRST REMEMBER that period jewel- The profit centers of independent jewelers are ry was contemporary jewelry when it was being threatened by the commoditization of dia- Wsold initially. It can only be described as “peri- monds, the expanded marketing of “branded” design- od” when it moves into secondary markets as the result er jewels, and of course the new marketplace of the of subsequent ownership, or with the passage of time. Internet. In fact, major auction houses such as Sotheby’s have recently made partnerships with New Marketing Opportunities important players in this field of e-commerce—in this The important periods before 1950 are well known, case Amazon.com. in particular Victorian, Edwardian (figure 1), Art Nou- Is there an opportunity for the independent jewel- veau, Art Deco (figure 2), and Retro. Unfortunately, er to establish a profit center in this area of artistic col- jewelry designed after 1950 has not been named by lectibles? I believe there is, but it first requires the jewelry historians; I call it “previously owned jewelry” acquisition of an inventory of quality period jewelry when it moves into secondary markets. to establish credibility, and then demands a commit- The marketing of quality period jewelry depends ment to the training and education of at least one on recognizing two characteristics that are inherent to salesperson in the organization to become an expert the human psyche. One is the universal desire to col- in this field. The appearance of learned and articulate lect. This appears at an early age and lasts a lifetime. jewelry historians over the last 25 years has produced The other is connoisseurship, which is a subjective many books and articles useful in this process. Finally, judgment that derives from one’s ego. he or she should ally with at least one recognized What better product exists to satisfy these human needs than fine artistic collectible jewelry? We have a Figure 1. Edwardian jewelry, like this circa 1900 unique product, the result of the unusual partnership platinum brooch set with pearls and diamonds, is pop- of Mother Nature’s wondrous creative force in pro- ular with collectors. Courtesy of J.&S.S. DeYoung. ducing from the depths of the earth beautiful, rare gem materials with the creative genius of fine crafts- men. Few other collectibles can make this statement. The important auction houses have seized this opportunity to do business in the marketing of “artis- tic collectible” jewels. Today, they report sales in this field of several hundred million dollars. This business has such great promise that the auction houses have shifted their emphasis from marketing to the jewelry trade to marketing directly to private individuals.

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GEMS & GEMOLOGY FALL 1999 101 dealer in period jewelry for help in establishing authenticity and direction.

The Importance of Provenance Period jewels with the provenance of important jew- elry houses of the past command a substantial premium— a premium that appears to be increasing yearly. Some of the key names that appear on jewelry sold in America in the first half of this century are Tiffany, with its high-quality gemstone jewelry as well as its Art Nouveau collectibles; T. B. Starr, of Marcus & Co. (who branched out from Tiffany); Dreicer & Co.; Black Star and Frost; and Raymond Yard, who came from Marcus & Co. Cartier (figure 3), which did not become established in America until the early 1920s, could be considered the artistic leader of this era because of the firm’s European influence. Period jewelry was also produced by several man- ufacturing firms in the first half of this century, and was sold by fine jewelry stores in major and secondary cities. Except for the manufacturer Oscar Heyman, however, these firms have disappeared from the scene, battered by the effects of the Great Depression and World War II. Most of this jewelry, though Figure 3. This diamond necklace has a known highly desirable, does not carry a name. provenance—“Cartier, London”—which greatly The 12 years that began with the Depression and enhances its value. Courtesy of J.&S.S. DeYoung. ended with World War II were a bleak period for the jewelry industry. After the war, Van Cleef & Arpels Figure 2. It is important that sales staff understand probably was the artistic design leader for 40 years. the distinctiveness of period pieces, such as these Art Harry Winston, with his emphasis on the juxtaposi- Deco (circa 1930) clip brooches, fashioned from tion of large stones to create a “free-form” effect, rubies and diamonds set in platinum. The clips can introduced a new look in the 1950s and ‘60s that be worn separately or as a single brooch. Courtesy of was extensively imitated. Other niche players with J.&S.S. DeYoung. their own look were David Webb, Schlumberger at Tiffany, and Verdura.

Conclusion Great jewels, whether new or previously owned, flow to the markets where new wealth is being generated and where there are wealthy patrons who encourage artistic innovation. As we approach the new millenni- um, the technological revolution is already creating— and will continue to create—great wealth in the United States. The opportunity is there for the enter- prising jeweler.

102 SYMPOSIUM PROCEEDINGS ISSUE Jewelry Design

Adapting Classic Designs to Modern Markets

Robert Lee Morris Robert Lee Morris Design Studio New York

HE MODERN MARKETS TODAY demand What makes one artist more popular and successful constant change and innovation. Fashion and than another artist is often the unique and harmo- Tadvertising have trained us to have a throwaway nious blend of both classic design language and the mentality, ready to leap from one trend to the next, personal signature style of the artist. When the latter guiltlessly abandoning any brand loyalty. It is my con- comes deeply from the heart and reflects the true soul tention that for one to remain sane in this culture of of the maker, then the use of the symbols of common the microchip and its blinding speed, people need a human consciousness become that much more emo- lifeline to ground themselves. This could be found in tionally moving. People in today’s urban society crave classic design language, a thread that winds its way images that connect us to our natural environment, throughout consciousness in all cultures. It is from for it is not only grounding, but soothing to our classic, primordial forms that artists in visual media industrialized and anxious souls. can breathe vitality into our modern products. As designers are challenged to create more ultra- modern, high-tech concepts—whether in clothing, jewelry, architecture, or Web site pages—it is their responsibility to constantly adapt classic designs into The uneven spirals of a hurricane their work, for designers are the ones who manipu- provided the classic design element late our sense of well-being in the most subliminal for this contemporary gold and dia- manner. mond necklace and bracelet. Photos The artist is the liaison, the shaman between the courtesy of Robert Lee Morris worlds of ordinary reality and the dream state and Design Studio. spirit dimension. Artists are the magical beings in our society who can translate for the rest of us the ineffa- ble experience of the mysterious universe. To be effective, therefore, the language of the artist must be one we all can understand, one that is composed of certain essential elements that I choose to call “classic components.” Carl Jung would call them “symbols of the Collective Unconscious.” Some examples of these elements of design are spirals (as in hurricanes, whirlpools, and seashell pat- terns), whiplash and serpentine curves (as in river bends, snakes, and fabric folds), (random pat- terns of chaos, as in piles of leaves in the forest, or the shapes of dunes or of pebbles washed up on the beach), and natural architectural forms (such as spider webs, ant and termite mounds, bee hives, or a bird’s nest).

GEMS & GEMOLOGY FALL 1999 103 Creating a Luxury Brand

David Yurman Yurman Design New York

HE EVOLUTION of Yurman into a Brands (luxury brands in particular) are in fact designer luxury brand has taken 25 years, built on continuity and consistency of message, so Twith a transformation from artist to designer to becoming a brand was our next evolutionary step. designer name brand to designer luxury brand. My Grudgingly—I was reluctant to emphasize my name wife Sybil and I were originally artists— she was a above the beauty of the product—we developed the painter, I was a sculptor— and together as partners we DY logo collection. We took our thinking “outside decided to bring our art forms to the world of jewel- of the box” once again simply by putting diamonds ry. Unfamiliar with jewelry manufacturing, we in silver (the “Silver Ice” collection). We chose our applied unconventional techniques and often wound retailers carefully and developed an authorized retail up using materials that nobody else wanted. Before network. We trademarked and copyrighted our prod- long, we began using cables in our pieces, and of ucts in order to control the image and protect the course the cable product eventually became our sym- brand. Protecting the brand is essential not only for bol. Although some were quick to label Yurman as our company, but also for the retail customer who “the cable company” or a “one-trick pony,” our seeks a sense of quality and authenticity. Brands col- cable product was more a matter of consistency in laborate and create alliances in this way: Customers communicating our message. want to join up, they want to belong. In recent years, we have focused on establishing Yurman as a luxury brand that carries the same classic style and classic shapes. Today we are experiencing a luxury revolution, one that began when companies The cable bracelet is recognized like Gucci and Armani started to globalize luxury. worldwide as the Yurman Technology— which enables us to understand the Design signature piece. demographics of our customers through database marketing — and an era of unprecedented wealth have combined to transform the concept of luxury. Whereas in the past luxury was exclusionary and extremely expensive, today’s luxury is accessible and broad-based. It involves joining, rather than standing apart. The accessibility of luxury should not be dis- missed as designer-brand pollution, because the quali- ty of today’s luxury signatures is very real.

104 SYMPOSIUM PROCEEDINGS ISSUE The American Designer Jewelry Movement: Where It Came from and Where It’s Going

Cindy Edelstein Jeweler’s Resource Bureau Pelham Manor, New York

E HAVE ALL BECOME ACCUSTOMED to the beads until 1969, the year of the first Bennington use of designer “names” in our business. (Vermont) Craft Fair. Many historians use that event W They represent the sizzle in our industry, so to mark the birth of the contemporary designer much so that many manufacturers now add a person’s movement. Several designers whose names we all name to their company logo whether or not that per- know well, such as David Yurman and Michael son actually designs jewelry or, in some cases, even Good, got their start there. exists at all. That trend will only continue to grow in At about the same time, a wave of metal artists were the coming years (see, e.g., figure 1). graduating from a diverse range of universities and art But designer jewelry as a business category is still schools. Thanks in part to the efforts of Mort Abelson relatively new. Up until the mid-1970s, the only and the Jewelers of America trade shows, by the late designer names that consumers could relate to were 1970s these artisans slowly became businesspeople. those of the big retail design houses such as Cartier Trade shows have since played an enormous role in the and Tiffany. Little was available to the middle class designer jewelry marketplace, and they will continue to beyond princess rings, bangle bracelets, and love be vital to the success of most designer businesses. Still other influences contributed to the growing Figure 1. This collection of Lisa Jenks jewels show- power of designers. Arts and crafts galleries began cases her signature “modern primitive” motifs. showcasing handmade jewelry; as the galleries flour- ished, jewelry became accepted as a contemporary art form. The fashion world played its part as well, with the work of designers such as Robert Lee Morris (fig- ure 2) gracing the covers of Vogue, Mademoiselle, and other fashion magazines. Designer organizations such as the American Jewelry Design Council, the Contemporary Design Group, and more recently the International Jewelry Design Guild also have had a positive impact. Trade magazines had always written about designers, but JQ magazine was the first to claim the movement as its own. magazine, launched two years ago, added the term better brands to our vocabulary. JCK entered the fray with a mini-maga- zine called Luxury, which speaks to the high end of the market. Design competitions were also a major part of the designers’ success story. Commodity pro- moters such as the World Gold Council and Platinum Guild International became major sponsors, and they

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GEMS & GEMOLOGY FALL 1999 105 and manufacturer and between true artistic talent and clever inspiration. We will see more of it in the years ahead. Also ahead are the following trends: In marketing, designers are reaching out directly to the consumer through the retailer. First, designers created their own brochures and handouts, then their own packaging, logo plaques, and even display units. Designers are not likely to relinquish this control. In the last five years, designers have made consumer magazine advertising a priority. More recently, designers have embraced the Internet. They have put up Web sites as an extension of their printed advertising materials, to control and promote the image they want the consumer to have. The next logical step is e-commerce, and with it comes the critical question: Will designers start to sell directly to the consumer, and leave the retailer out of the chain? Only time will tell. E-design is another digital influence to consider. Virtual-design technology that lets retailers work with their customers to create a custom design almost instantaneously is already here. De Beers has just added a program to its Web site with which consumers can Figure 2. This dramatic sterling silver bracelet by design their own engagement rings. This points to the designer Robert Lee Morris illustrates Morris’s use of observation that if everyone can do it, then it is no positive and negative space and his ability to make longer unique; since the lure of the unique is eternal, metal look fluid and soft. Photo by AB Studio, the challenge for true designers is to figure out how to courtesy of Robert Lee Morris. differentiate themselves and their work from the pack. Another trend we see is a growing chasm between the big guys and the not-so-big guys, as investors and large companies jump in either to back or swallow up benefited from the buzz generated by the unique, designer-owned businesses. For the really successful exciting pieces that designers created for these compe- manufacturers out there, it might be easier to buy titions. some designer talent than find it on their own. Even the economy was a factor. As it recovered More designers are opening their own stores, from the ‘80s slump, those manufacturers still left which helps strengthen the designers’ position in the standing saw that designers had done well in difficult marketplace for themselves and their retailers. But to times, so they adopted that approach as their own. A become really big, designers will diversify into fashion new trend emerged: The mass-market manufacturer accessories, home accessories, and similar products as began taking on a designer look, sometimes line for part of a category called “lifestyle fulfillment.” line. Most designers are incensed by this trend, but for Will these trends bring about the demise of real the manufacturers it is a good marketing concept that jewelry designers, or will they stimulate greater inter- has already been tested. Today, this is a growing prac- est in the designer jewelry movement as a whole? tice, one that blurs the lines both between designer We’ll have to wait and see.

106 SYMPOSIUM PROCEEDINGS ISSUE Retailing

Perspective of a High-End Jeweler

Stephen Magner Neiman Marcus Dallas, Texas

HAT DOES IT MEAN to be a high-end inviting, relaxing, and well-lit. The environment jeweler? Do you simply sell more expen- should be as invisibly secure as possible. This new W sive items than your industry cohorts? Do millennium will bring much better security devices, you have fancier real estate? Do you have bigger detectors, showcase development, and light venues to markups? Or do you act differently? allow us to make even better and more “user-friend- I suppose that being high-end means that your aver- ly” presentations. After all, we are in one of the few age transaction is significantly higher than the norm and truly romantic businesses. How romantic is it to be that you primarily deal with the top 10% of the mon- buzzed in past the rent-a-guard, seated under the eyed population, those who can afford to pay for your surveillance camera with the sales associate fumbling merchandise immediately or certainly within a year. through six keys to show you two items at a time, Note, though, that less than 1% of the U.S. popu- wiping your fingerprints off as they retest the first lation currently has a household income over item they showed you with a diamond detector? $150,000 (approximately 2.2 million people). And Your facility must make it easy for customers. households with an income over $500,000 number a They have limited patience, and their time is very mere 420,000. By the time these households pay their valuable. A comfortable, well-appointed viewing taxes and bills, how much is left? And how many room is highly recommended. even like or believe in owning jewelry? In essence, the top of the pyramid is very small. So if you’re Support going to get into the chase in the new millennium, Support areas include loss prevention, human you’d better be prepared. Your competition will be resources, advertising, marketing, public relations, tough and coming from all directions. The Web- credit services, information services, and inventory savvy customers in the new millennium will be much control. Whether you have a staff for these areas or more informed than ever before. They will be able to have to wear all of these hats yourself, things are learn about products, grading criteria, manufacturers, going to change. Again, technology is going to enable designers, prices, and your competitors. They will us to network more and save time so that we can know the important questions to ask, and they will focus on our most important function: Selling jewels! expect you to be able to defend your claims. If you don’t have a bar code system, get one. If Having said that, where does the high-end jeweler you don’t surf the Net, start. It is a sea of information. go from here — to this mind-boggling new millenni- There is software available to aid in almost all support um full of smart people? areas. Public relations, marketing, and advertising will When I visit our Neiman Marcus salons, I try to all be especially important in either putting yourself make observations in the following four categories, on the map or keeping yourself off it. which I believe will be the ingredients for success as a high-end jeweler: Facility, Support, Merchandise, and Merchandise People. People are, by far, the most important. I think there are two great sins that get jewelers in Merchandise is second. trouble: (1) Owning too much inventory, and (2) not knowing the real value of the merchandise. We are in Facility a slow-turning, expensive-inventory business. Turn is You have to have an arena in which to perform. the biggest focus one should have. I think borrowing Regardless of your salon’s size or style, it should be inventory is a great idea, if you can acquire it at the

GEMS & GEMOLOGY FALL 1999 107 The merchandise carried by a high-end jeweler should have a special look, a distinctive quality. Such quality is illustrated by these pieces of high-end platinum jewelry, from Neiman Marcus’s Estate collection, which are set with diamonds and sap- phires. Courtesy of Neiman Marcus.

right price. In addition, a high-end jeweler’s mer- your city’s largest company going to feel comfortable chandise should have a look, a distinction. It is diffi- taking your advice or that of a staff member? The cult to make a statement if you try to be all things to high-end jeweler in the new millennium will need to all people. be a socialite, a detective, an accountant, a gemolo- Merchandise to me falls in one of five categories: gist, a teacher, a marketing expert, and, of course, a designer, estate, traditional, and “precious” jewelry— great salesperson. People buy jewels from the people and watches. All of these categories have a bright they like and trust. If all things are equal, you must future for various reasons. I expect the new millenni- give the customer a reason to shop with you. um to bring some wonderful new and innovative The high-end retailer is also responsible for a stag- designers and watchmakers. gering amount of product knowledge. You have to know diamonds, colored stones, gold, platinum, People treatments, trade-in values, watch making, setting, This is the most important entity there is in this indus- repairs, disclaimers, anti-trust laws, and so on. There try. The skills needed to be a successful high-end jew- are a lot of pitfalls, and because you are dealing with eler are quite varied. They have not changed dramati- successful, moneyed, demanding people, you really cally over the centuries: They have only intensified. need to know—or have access to knowledge on— First—then, now, and always—you must be a sell- everything related to the jewelry you sell. ing-minded communicator. You must be able to The great reward is that you become the place articulate complex information to your clients, your where desires are fulfilled— the finder, the seller of rar- staff members, your bankers, and your vendors. ities, the dealer of the precious commodity. The next You have to be aware of fashion, of business millennium will actually be a lot of fun for those in the trends, of current events. You have to share some jewelry industry with enough dedication and patience. commonality with your clients. Is the chairman of It is a lifelong journey, and a worthwhile one.

108 SYMPOSIUM PROCEEDINGS ISSUE Perspective of an Electronic Retailer

John Calnon QVC West Chester, Pennsylvania

S RECENTLY AS THE MID-1980S, the package shipments in 1999. Within the jewelry cate- idea of shopping from home meant flip- gory, QVC’s credentials are even more noteworthy: A ping through catalogs and other printed With annual U.S. shipped sales of over $1 billion in media. And while some catalogs came to represent jewelry alone, QVC is among the largest-volume sizeable sales volumes, these were typically limited to jewelry retailers in the world’s largest consumer mar- certain niches such as apparel and hobbies. They ket. At its current growth rate, QVC will surpass $1.5 never developed into a major factor in the jewelry billion in jewelry sales by 2002 (see figure 1). business. QVC’s growth remains largely misunderstood by Today, electronic media are fundamentally chang- industry observers, many of whom mistakenly ing how people shop. With the growing appeal of tele- attribute QVC’s success to its technology and infra- vision- and personal computer–based retail channels, structure. Yet, when the Harvard Business School did the very definition of shopping is evolving. In the U.S. alone, three-quarters of all adults made purchases from the comfort of their homes in the past year. In cate- gories such as books and music, online retailers like Figure 1. QVC projects jewelry sales of more than Amazon.com are stealing huge chunks of market share $1.5 billion in 2002, almost double the amount of away from traditional bookstores and music retailers. 10 years earlier. What does all this convergent e-commerce mean for the jewelry industry: Does it mark the end of the traditional jewelry retailer? Will everyone soon be buying their jewelry from their couches? Or will the jewelry industry somehow remain uniquely immune to all these tectonic shifts in retailing? The answer is “no” on all counts. QVC has a unique perspective on electronic retailing. With 1998 net sales of $2.4 billion, QVC is now larger than many well-established traditional retailers such as Bloomingdale’s and catalog mer- chants such as L.L. Bean, and it is more than twice the size of either The Home Shopping Network or Amazon.com. QVC’s TV- and PC-based retailing services reach more than 70 million U.S. homes 24 hours a day, and they will generate over 600 million page views, 100 million phone calls, and 60 million

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GEMS & GEMOLOGY FALL 1999 109 Figure 2. Two factors in QVC’s success as an electronic retailer are its relaxed on-air presentations and its efficiency in handling customer orders.

a case study on QVC, they found that QVC is less a ness excels at creating demand that spills over to tra- story about technology, and more about a culture that ditional retail. Viewership data confirm that for every is obsessed with pleasing the customer. In their words order QVC takes, the network reaches thousands of (Rayport and Louie, 1997), QVC represents “a viewers who ultimately choose to shop at traditional breakthrough service business.” retail. In many ways, QVC represents a true hybrid In fact, QVC represents that rarest of retail envi- of marketing and distribution, creating more overall ronments: one that is both consumer-friendly and demand for a wide variety of categories, most brand-friendly (figure 2). QVC provides an honest, notably jewelry. In direct contrast to the old-school relaxed, information-rich presentation of features and retailing obsession with market share, retailing in the benefits—without hype, paid audiences, or artificial new millennium will call for a new understanding of stimulants. And its quality-assurance standards, how channels of trade can actually complement one money-back guarantee, and confidentiality policies another. In the end analysis, a bracelet sold on QVC are built to ensure world-class customer satisfaction means many more sold at the jewelry counter. levels. This in turn attracts an upscale, discerning, and very loyal customer base. Perhaps more importantly for the jewelry busi- ness, QVC is proving every day what most market- R EFERENCE ing theorists can only talk about—that the power of Rayport J.F., Louie D.L. (1997) QVC, Inc. Harvard synergy is very real. QVC’s televised shopping busi- Business School Publishing, Boston, MA, 32 pp.

110 SYMPOSIUM PROCEEDINGS ISSUE Meeting Customer Needs

Matthew Stuller Stuller Settings Inc. Lafayette, Louisiana

HERE ARE MANY WAYS for the jewelry • Be the retailer’s partner. Help the retailer cre- manufacturer to help the retailer be prof- ate marketing campaigns and advertising pro- Titable. Each is ultimately some form of cus- grams. Stores can’t carry everything on their tomer service, a concept that extends far beyond just counters, so supply catalogs, CD-ROMs, and being courteous. literature that are retail-sensitive and priced cor- rectly. Never compete against them by selling • Document. Be exacting, be precise with facts and retail. figures. Any time you can’t provide something for the retailer, your sales representatives should be • Be flexible. It may seem difficult, but today’s documenting it and finding out why not. manufacturer cannot set a minimum order. Every sale is crucially important to the retailer, • Deliver on or before your promised dates. whether it’s a $40,000 diamond or a 40-cent Add a little extra cushion to your estimated foil-backed stone. Even if it isn’t profitable, date, which will allow for any unexpected prob- stock the product that the retailer needs to take lems in the manufacturing process. care of his or her customers. Similarly, be able • Listen to the jewelers, and know exactly to customize and handle special orders. what their needs are. What are their specific problems, what can they sell, what can’t they • Provide “just-in-time” inventory. The sell, what are the issues they must deal with on a retailer should be able to rely on the manufac- daily basis? The manufacturer should set up turer to deliver rush orders directly to the con- focus groups of customers throughout the coun- sumer on time, every time. As more retailers are try to identify strengths and weaknesses. becoming involved in commerce over the Internet, “just-in-time” inventory will become • Help finance the retailer. Today’s manufac- even more important. turer often must serve as a bank for the retailer. Offer special terms for buying seasons, and offer • Give your customer a little something special conditions for products they are unable extra, something more than what is expected. to sell. Having your customer stuck with prod- In Louisiana, we call this lagniappe. Whether it’s uct is bad for everyone. candies or a little bonus check, lagniappe can make a surprising difference. • Make it easy and pleasurable to do busi- ness with your company. Think about it: Once you’ve taken care of your customers and We spend half of our waking lives in business. If finally made a little profit, the manufacturer’s next it’s painful to do business with you, a retailer responsibility is to give something back to the indus- can always switch to one of your many com- try. Support organizations, programs, and educational petitors, so you should make things fun, humor- seminars. Invest in our industry’s future to ensure that ous, and personal. it stays strong and bright.

GEMS & GEMOLOGY FALL 1999 111 Can a Family Business Compete in the 21st Century Jewelry Market?

Thomas Tivol Tivol Jewels Kansas City, Missouri

S WE COMPLETE THE CENTURY, many fami- believes that these types of relationships, when suc- ly jewelry stores will have mastered the cessful, have an integrity that propels those involved A basic merchandising, marketing, pricing, to become the best they can be. At the same time, display, lighting, legal, and accounting functions that this philosophy represents a key business strategy: enable them to compete successfully in the current placing primary emphasis on staff development to retail climate. As the millennium closes, however, the compete and win against large concentrations of jew- family jewelry store faces an uncertain future. elry wealth in other merchandising formats. Competitors will have access to the same techniques, technologies, and even creative energies. Continuing The Complete Retailer commoditization and the public's demand for a bargain Smaller retailers can take what is appropriate from (or the illusion of a bargain) will put a strain on the the parent-child model, apprenticeship, and mentor- small retailer, and ultimately the exhaustion of running ing to develop their staff members into consummate the business and the squeeze on profits may force many professionals. That is, the employee is taught to families to seek a living elsewhere. How can the family “live” the entire retail jewelry experience, rather business hope to survive in the 21st century? than merely being trained in certain aspects of prod- uct knowledge and salesmanship. Retailers, even Importance of a Teaching Relationship those with established in-house training programs, Historically, much of the internal and external power generally expect too little from their staff members, of a family business derives from the parent-child rela- and thus these employees learn only the minimum tionship. Children require a caregiver in order to sur- required. The complete retailer demands much vive. From the first month, the child forms emotional more: detailed study of the history of our art, gemol- attachments to the parent, and these are expanded in ogy, design, engineering (watch and shop technolo- myriad ways in a family business. Similar in kind, gies), ethics, and law. A store that is always represent- although different in structure, are the concepts of ed by a well-trained, professional sales staff can more apprenticeship and mentoring. All of these involve a than offset the apparent wizardry of technology and teaching relationship— sometimes between old and the profit pinch of commoditization. Such training is young—with duty and respect as its core, and a life- an important key to longevity for the independent long passion for work as its function. The author retail jewelry merchant.

112 SYMPOSIUM PROCEEDINGS ISSUE Panel Discussions & The War Rooms Panel Discussions 114 DIAMOND PRODUCTION IN THE 21ST CENTURY Moderator: Sally E. Ehmke Coordinators: Sheryl Cashmore and Alan DeGhionno 116 MANUFACTURING AND MARKETING DIAMOND JEWELRY IN THE 21ST CENTURY Moderator: Brook Ellis Coordinators: Michael Clary and Phillip Yantzer 118 THE ROLE OF LABORATORY-GROWN MATERIALS IN THE 21ST CENTURY Moderator: Daniel W. Campbell Coordinators: Prashant Khatri and James R. Viall 120 THE LEADERSHIP ROLE OF FINE JEWELRY IN THE 21ST CENTURY Moderator: Kathryn Kimmel Coordinators: Vivianne Del Signore and Abba Steinfeld 122 MARKETING PEARL JEWELRY IN THE NEXT MILLENNIUM Moderator: Seung-Hae Moon Coordinators: Diane Saito and Michael Evans 124 CRITICAL ISSUES IN THE 21ST CENTURY Moderator: Jim Littman Coordinators: Kim Cino and Bruce Lanzl 126 MARKETING OPPORTUNITIES IN THE 21ST CENTURY Moderator: Fred Stocco Coordinators: Diane Flora and Doug Kennedy 128 THE IMPORTANCE OF ELECTRONIC NETWORKING IN THE 21ST CENTURY Moderator: James Marker Coordinators: Patrick Ball and Brian Genstel The War Rooms Coordinators: Armando de Peralta (team leader), Laura Tanger, Shannon O’ Rourke, Nancy Podraza, Elaine Ferrari-Santhon, Donald J. Foster, Mark Johnson, and Paula Straub 130 BRANDING

132 APPRAISALS

134 DIAMOND CUT

136 DISCLOSURE Panels

Diamond Production in the 21st Century

PANELISTS James Picton Petra Diamonds, Lanseria, South Africa A. J. A. “Bram” Janse Archon Exploration, Perth, Australia Uri Okoemov Alrosa, Moscow James R. Rothwell BHP Diamonds, Vancouver, Canada Alfred A. Levinson University of Calgary, Canada

LOBAL DIAMOND PRODUCTION statistics monds by weight, but only 6% by value (average and projections for future sources and supply $14/ct). Minor production also comes from Tanzania G were the focus of this panel. Individual experts and certain West African countries, mainly Guinea, discussed production and exploration in the world’s Ghana, and Sierra Leone. most important mining regions: Africa, Australia, Mr. Picton expects Africa to become even more Russia, and Canada. Minor producing areas—pri- important in the next few years. For 2005, he fore- marily in South America, India, Indonesia, and casts world rough diamond production at 122 Mct, China— also were discussed. with Africa accounting for 75% of this total both by weight (91.9 Mct) and value (average $81/ct). The Africa increase of 23.1 Mct (above the 68.8 Mct in 1998), James Picton reported that, in 1998, Africa account- will come mainly from Angola, Botswana, and South ed for 68.8 Mct — (60% by weight and 74% by value) Africa. At present, De Beers’s (including Centenary) of the approximately 114 Mct of rough diamonds African production accounts for 28% of the world mined worldwide. Botswana alone accounted for total by weight and 50% by value; in 2005, these val- 17% by weight, and 29% by value of the total. ues are projected to be 50% and 45%, respectively. Jwaneng and Orapa should produce for another 45 and 63 years, respectively, so Botswana will continue Australia to be a major producer well into the 21st century. Dr. Bram Janse concentrated on the Argyle mine South Africa, with its six major producing mines, and its huge production during the last 15 years: over presently contributes 9% by weight, and 17% by 500 Mct from the pipe, and 40 Mct from nearby allu- value, to world diamond production. The major pipe vial sources. For each of the last seven years, Argyle mines—Venetia, Finsch, and Premier—will produce has produced an average of about 40 Mct, equivalent for at least 30 more years. South African beach and to 35% of the world’s annual production by weight. marine producers Alexkor and Trans Hex account for On the basis of present ore reserves and the planned only 0.3% of current world production by weight, expansion of the pit, production is anticipated to con- but the value is exceptionally high (US$275/ct and tinue through 2005. Future underground exploration $379/ct, respectively). Angola and Namibia account could enable Argyle to stay active until 2009. for 11% and 6%, respectively, of world production by After years of exploration, Ashton Mining discov- value (but only 3% and 1%, respectively, by weight). ered the diamond-bearing Merlin kimberlite field, The (Democratic Republic of) Congo (formerly consisting of 12 small pipes, in the Northern Territory Zaire) accounts for about 27% of the world’s dia- about 600 miles (960 km) east of Argyle. Now active,

114 SYMPOSIUM PROCEEDINGS ISSUE the mine is expected to produce for about five years. tion, including exploration. The mine is a joint ven- Production will be small (150,000–300,000 ct/yr), but ture between BHP Diamonds Inc. (51%), Dia Met the diamonds are of good quality. Merlin’s mostly col- Minerals Ltd. (29%), C. E. Fipke (10%), and S. L. orless, well-crystallized diamonds are worth about Blusson (10%). BHP Diamonds will distribute 35% of US$150/ct, whereas Argyle’s brownish and poorly its production through De Beers and 65% through shaped stones are worth about $8/ct on average. BHP’s own offices in Antwerp. Exploration is continuing in various parts of Australia. The outlook for additional diamond mines in Canada is promising. More than 300 kimberlites have Russia been identified in the NWT alone. Diamond explo- Uri Okoemov presented a detailed account of the ration activity is under way in the NWT by other diamond industry in Russia, starting with the estab- companies at several promising kimberites, notably lishment of the mines and polishing factories in the Diavik, Jericho, Snap Lake, and Kennady Lake. 1960s. Russia currently accounts for more than 20% Kimberlites have also been found in other parts of of world diamond production by weight and is sec- Canada. It is estimated that Canada will supply about ond only to Botswana in total value of rough. 10% of the world’s rough diamonds by early in the Russia’s polished production in 1997 exceeded 21st century. US$700 million, so that it is now the world’s fifth largest diamond manufacturing country. Other Sources Almost all (98%) of Russia’s rough diamond pro- Dr. Alfred Levinson discussed those diamond-pro- duction comes from the Republic of Sakha (Yakutia) ducing countries not covered by the other panelists— and is controlled by Alrosa. This government agency each of which contributes < 2% of current world pro- sells the rough diamonds on the world market and also duction. The six countries in this category are Brazil, distributes them to designated Russian cutting factories. Venezuela, Guyana, India, Indonesia, and China. About 97% of the polished production is exported. In the South American countries, mining is con- It is estimated that Russia will eventually produce fined to alluvial deposits on the major rivers, for 2.5 times more rough than at present, with Yakutia which the primary sources are largely unknown. accounting for more than 40% of this amount. The Brazil is the most important of these, with up to 2 remaining 60% will come primarily from Northern Mct mined annually in recent years, mostly from the European Russia (e.g., the Arkhangelsk region) and states of Roraima (in the north) and Mato Grosso (in southern Siberia. New sources include: the Yubi- the southwest). Brazil has at least 600 known kimber- leynaya (Jubilee) pipe, opened in 1996; the Inter- lite and lamproite pipes. Although many are diamond nationalaya pipe, the first underground diamond mine bearing, none is economic at present. Considerable in Russia, scheduled to start production in 1999; and exploration activity is in progress. Botuobinskaya and Nyurbinskaya, two major pipes in Closely associated with the Brazilian alluvial dia- Yakutia that are scheduled to begin operations in mond production in Roraima are deposits, also allu- 2000 and 2002, respectively. vial and of unknown primary source, in adjacent parts of eastern Venezuela and Guyana. Alluvial diamonds Canada are also mined in the Guaniamo district of western James Rothwell discussed the world’s newest dia- Venezuela. The source of these diamonds has been mond-producing country. Particular emphasis was on traced to uneconomic Precambrian kimberlites. In the Ekati mine in the Northwest Territories (NWT), recent years, Venezuela and Guyana have produced which officially started production in October 1998. It annually up to 500,000 ct and 50,000 ct, respectively. has the potential to supply 4% of the world’s diamonds The remaining countries have only limited pro- by weight (up to 4.5 Mct annually) and 6% by value; duction at present: India (~25,000 ct/yr), Indonesia reserves are sufficient for at least 25 years. (~10,000 ct/yr), and China (~50,000–180,000 ct/yr). The Panda pit is the first of five kimberlite pipes Exploration for diamonds in each of these countries is that eventually will be mined at Ekati. It cost about either planned (India) or of minor significance US$700 million to bring the Ekati mine to produc- (Indonesia, China) compared to that in other localities.

GEMS & GEMOLOGY FALL 1999 115 Manufacturing and Marketing Diamond Jewelry in the 21st Century

PANELISTS Anna Martin ABN AMRO Bank, New York Edward Bridge Ben Bridge Jewelers, Seattle, Washington Sheldon Kwiat Kwiat, Roisen and Ferman, New York Eve Goldberg William Goldberg Diamond Corp., New York Martin Gruber Nova Stylings, Van Nuys, California

HE 21ST CENTURY will mark a revolu- The financial centers are very optimistic about the tion in the way diamond jewelry is manu- future of the industry, according to Ms. Martin, and Tfactured and marketed. Banking practices, dis- they are proactively adapting their financing practices tribution channels, diamond reports, niche marketing, to meet its needs. and evolving marketing opportunities will create a diversity of challenges and opportunities for the dia- Retailer’s Perspective mond jewelry industry. This panel of innovative busi- Edward Bridge discussed the retailer’s perspective on nesspeople shared their views on these various aspects the five trends that will affect the gem and jewelry of the diamond jewelry industry, with one resounding industry in the next century. First is the overall econo- conclusion: If the challenges presented are met with a my. Since 1992, a great economic boom has seen dia- balance of education, creativity, and business acumen, mond sales flourish in the U.S.; however, business then more opportunities will be available than have operates in cycles, and there is no way to know when been seen by any previous generation. the current situation will change. Second, there will be more competition and more distribution channels. Financial Perspective Although only a small percentage of retail jewelers Anna Martin described two key financial challenges currently use the Internet, it represents a major shift in facing the diamond jewelry industry in the new centu- the way diamond jewelry is bought and sold. In addi- ry. The first challenge is the shift of inventory respon- tion, the Internet threatens to turn diamonds into a sibility from retailer to manufacturer. In the past, commodity. Approximately 80% of Web purchases retailers paid cash for inventory in a relatively short provide “no smell, no feel” during the sales transac- time. Now these same retailers are demanding that tion. However, Mr. Bridge believes that, because of manufacturers provide memo, bin stocking, returns, the nature of the product, people still will want to go and marketing support—without an increase in manu- to stores where they can touch, feel, and compare dia- facturers’ margins. Second, the industry needs to rein- monds. vent itself. Vertical integration, with suppliers owning The third trend is the application of new technolo- retail outlets and retailers owning manufacturing facili- gy to diamonds. Color and clarity enhancements will ties, will become necessary. Retailers, faced with continue to affect the way diamonds are sold. knowledgeable and cost-conscious consumers who Branding and designers are the fourth trend. Although have alternate sources for their jewelry needs, often brands cost more, this trend will differentiate dia- must stretch credit terms to attract these consumers. monds and protect their integrity. The fifth and final Mergers, acquisitions, and strategic alliances will trend is demographic change. Aging baby-boomers strengthen the industry so it can meet these challenges. and the transfer of wealth to new generations are cre-

116 SYMPOSIUM PROCEEDINGS ISSUE ating increased opportunities for selling diamond jew- elry. Retailers who recognize and address these trends will realize success in the new century.

Role of Diamond Reports Sheldon Kwiat provided a history of the diamond grading report and the opportunities that these reports present for future diamond sales. First introduced in 1955, diamond reports have become a staple in the ‘90s. The diamond report has changed the nature of the relationship between buyers and suppliers. At the same time, consumer awareness of reports poses chal- lenges and offers opportunities. Sales associates must be educated and trained to recognize the strengths and weaknesses of a diamond report, and they must con- vey this information to the consumer. Mr. Kwiat noted that some retailers use reports to protect them- selves from overzealous sales associates. Although Brand-name diamond jewelry, such as this Kwiat reports differ from one laboratory to the next, with Couture by Robin Garin, will become more prominent different grades, standardization is not practical or in the 21st century. Jewelry courtesy of Kwiat, Inc.; desirable due to the demands of local markets. photo courtesy of Platinum Guild International USA. Mr. Kwiat predicted that reports will have an even greater impact in the future. In particular, there will be more emphasis on cut. Demand by consumers and consumers want to buy the best. Ms. Goldberg also insurers alike will increase, as will demand for addi- predicted that there will be a return to romance in the tional services such as laser inscription with report future, which will provide new opportunities for man- numbers and brand names. With the threats posed by ufacturers, suppliers, and retailers of diamond jewelry. diamond substitutes, synthetics, treatments, and Internet fraud, there is a pressing need for trade associ- New Marketing Opportunities ations to meet on the future of diamond reports in Martin Gruber questioned whether there is too much order to protect the consumer and the industry itself. marketing opportunity. The Internet and advertising in all media create a great amount of stimuli. Marketing Fine Diamonds However, with more opportunities now than ever Eve Goldberg noted that greater consumer wealth before, it could become difficult to recognize the ones provides opportunities to market high-quality dia- that will work. Mr. Gruber also noted that the devel- monds and designs. While acknowledging the increas- opment of designer brand names, a crossover from the ing importance of reports and lists, she emphasized fashion industry, is only going to increase until design- that marketing in the 21st century need not be limited er brands become the norm. Baby-boomers with to these instruments. People are proud to sell a superi- greater discretionary funds are seeking something dif- or product, and they recognize that top cuts are creat- ferent and unique. These consumers are now begin- ed at a higher cost due to lower yields. The basic ning to turn to artists for a less-commercialized, more- foundation of diamond jewelry sales is a well-made personalized new look. The limited distribution of round-brilliant-cut diamond accentuated with a quali- these artisanal works provides the “uniqueness” sought ty setting; it takes more creativity to sell fancy cuts. by this consuming group. Manufacturers are being The Internet provides a sales forum for lower-quality challenged to develop new setting styles, using a larger diamonds. However, those who want high-quality range of metals. Mr. Gruber called for balance diamond jewelry with top cuts will use the Internet between retailers, who have the ability to support lim- for information only; then they will seek retailers in ited product lines, and designers, who can deliver order to see, feel, and admire the diamonds. These these products to the market.

GEMS & GEMOLOGY FALL 1999 117 The Role of Laboratory-Grown Materials In the 21st Century

PANELISTS Thomas Chatham Chatham Created Gems, San Francisco, California Hisashi Machida Kyocera Corp., Tokyo Emmanuel Fritsch University of Nantes, France Kurt Nassau Nassau Consultants, Lebanon, New Jersey

ABORATORY-GROWN MATERIALS have cer- lab-created gems. As technology continues to advance, tainly contributed to the constantly evolving the options available to consumers will increase, pro- L nature of the gem and jewelry industry. New viding a wider variety of attractive alternatives to natu- materials, and new processes by which lab-created gems ral gemstones. are made, present jewelers and gemologists with an ever-growing number of opportunities and challenges. Production and Distribution The panelists shared their unique perspectives on this Dr. Hisashi Machida addressed the topic of produc- important topic by addressing the production and distri- tion and distribution from the perspective of Kyocera bution of lab-created gems, their identification, oppor- Corp., which first marketed Inamori-created emerald tunities that these gem materials represent, and some in 1975. Inamori now produces 12 varieties of created specific gems that may be created in the future. gem material: synthetic emerald, alexandrite, cat’s-eye alexandrite, blue sapphire, ruby, star ruby, pink sap- Opportunities with Luxury Synthetics phire, yellow sapphire, “padparadscha” sapphire, green Tom Chatham was quick to point out that “change is chrysoberyl, white opal, and black opal. The synthetic happening all around us,” and that we should be alert emerald is produced using a flux method, the synthetic to the benefits change can bring. As examples, Mr. and corundums by a combination of a flux Chatham mentioned inventions such as the light bulb process and pulling, and the synthetic opal by precipi- and the telephone, which were not universally recog- tating tiny silica particles in water. According to Dr. nized as significant when they were first made public. Machida, all of these materials are easy to identify with Similarly, gems made in the laboratory have not a microscope. They all have characteristic internal fea- always been appreciated. The opportunities for such tures, such as the veil-like inclusions and phenakite materials, however, are growing tremendously. Lab- needles found in the lab-created emeralds. Dr. Machida created gems provide a beautiful product with an called attention to the fact that Inamori synthetic stones attractive price tag. Mr. Chatham pointed out that the are used in the creations of numerous jewelry design- supply of some natural gemstones is simply not keep- ers. This jewelry is sold in traditional jewelry stores, ing up with demand. In addition, natural gems are department stores, catalogues, door-to-door, at exhibi- subject to extensive manipulation, given the various tion fairs, and in 20 Kyocera retail stores. Loose treatments that exist today. Laboratory-grown materi- Inamori synthetic stones are sold only by authorized als have withstood the test of time, responded well to dealers who are skilled in explaining the factors that set competition, and overcome the problems stemming these gems apart from others. Various qualities are from a lack of understanding of the material. available, and they are graded using a system adapted Customers who are properly educated are choosing from the GIA colored stone grading system.

118 SYMPOSIUM PROCEEDINGS ISSUE Identification Challenges Dr. Emmanuel Fritsch cautioned that, in the last decade, more attention has been paid to the detection of treatments than to the identification of laboratory- grown materials. Dr. Fritsch stated that “the best basis for the identification of synthetics is a keen sense of observation.” In those situations where observation and classical gemology are not sufficient, however, advanced instrumentation becomes essential. There are a number of such sophisticated tools and practices. UV-visible- near infrared absorption spectroscopy, for example, can be useful in detecting most synthetics, because they usu- ally are more transparent to ultraviolet radiation than are natural gems. Other techniques that Dr. Fritsch men- tioned are infrared absorption spectroscopy, X-ray fluo- rescence, and laser Raman microspectrometry. There also are instruments that are gem specific, such as the Synthetic moissanite (here, approximately 0.4–0.7 DiamondSure and DiamondView (developed by De ct each) is one of the newest laboratory-grown materi- Beers), which are used only to separate natural from als to enter the gem and jewelry trade. Photo cour- synthetic diamonds. In the future, instruments will tesy of Charles & Colvard. need to be developed or adapted to look at details that we cannot study at present. One such tool would be the ion probe, which detects impurities one or two continue. Hydrothermal synthetic tourmaline and orders of magnitude smaller than is possible with instru- topaz may become available, but they probably will not ments commonly in use today. be economically viable in the near future. Gems that are more likely to be synthesized commercially, Future Synthetic Gemstones according to Dr. Nassau, are malachite, jadeite, and In making his predictions for new synthetic gemstones nephrite. It is even possible that a truly synthetic pearl of the 21st century, Dr. Kurt Nassau referred to actual will be developed. developments that had come about since he had origi- nally predicted them in his book Gems Made by Man From the Audience (1980). One material that he predicted 20 years ago During the question-and-answer session, it became was gem-quality synthetic moissanite. This has become apparent that there is real concern among jewelers and an important diamond simulant, with 14,000 carats gemologists regarding the accurate and consistent iden- shipped by the manufacturer in the first three months tification of laboratory-grown gems. Dr. Nassau was of 1999 alone. Dr. Nassau pointed out that there have asked if he thought synthetic tanzanite would ever been one or two significant new laboratory-grown become available commercially. He replied that it was gem materials every decade for the past 20 or 30 years. unlikely, although Mr. Chatham said that his company Laboratory-grown gem materials that have become has been considering the possibility. Another attendee more important in the past two decades include syn- wanted to know how large a synthetic emerald could thetic , synthetic red beryl, flux-grown syn- be grown, presumably so that she could make certain thetic red spinel, and synthetic diamond. assumptions about the identity of large emeralds that Dr. Nassau believes that we will continue to see the she might encounter. Mr. Chatham did not put her introduction of new synthetic gems, despite the fact mind at ease when he responded that there is a that the “easy” synthetics already have been grown. Chatham-created emerald in the Smithsonian that Although in years past, certain individuals and compa- weighs 14,000 ct. A rumor that synthetic moissanite nies set out to create gem materials for the jewelry could be treated in such a way as to make it isotropic industry, recent synthetics are “spin-offs” of technology was also questioned. The concerned party was assured focused on other industries, and this trend is likely to that such a result is impossible.

GEMS & GEMOLOGY FALL 1999 119 The Leadership Role of Fine Jewelry in the 21st Century

PANELISTS Thomas Gübelin The Gübelin Group, Lucerne, Switzerland Ralph Destino Cartier Inc., New York Helene Fortunoff Fortunoff, Uniondale, New York Henri Barguirdjian Van Cleef & Arpels, New York Terry Davidson Asprey & Garrard, London

RADITIONALLY, THE WORLD’S finest jewelry counting as a means of differentiating themselves. Mr. houses have set the standards by which lux- Gübelin’s advice to retailers is to use custom designs, Tury goods are sold. They have defined mer- quality guarantees, and customer service as the means chandising trends, marketing and branding strategies, to gain a competitive edge. and customer service standards that the rest of the retail jewelry industry emulates. It is no wonder that Cartier the industry now looks to these houses for guidance Despite somber predictions pointing to the Internet, regarding the future. Members of this panel addressed catalog marketers, and mass merchandising as accom- a number of key issues that affect the way businesses plices in the demise of the traditional retailing envi- will be run in the 21st century. Among them are mass ronment, Ralph Destino remains positive about the retailing, e-commerce, emerging technologies, and future. A high-end jewelry or specialty store can offer changing global markets. shoppers a pleasurable experience that is not duplicat- ed by any other format—an inviting setting, a unique The Gübelin Group product, social interaction, and a sense of community. Thomas Gübelin provided an optimistic analysis of Mr. Destino also discounted the discounters, citing the European luxury goods market. The current mar- studies by both the Roper Group and the ket is prospering as a result of the fall of the Iron Mendelsohn Organization that show that the young Curtain and the consolidation of national economies. American consumer is informed, responsive to prod- Today, 60% of the wealth is concentrated in the ucts embodying craftsmanship and design integrity, hands of consumers who are 50+ years old. About and willing to pay a premium for top-quality, lasting 70% of European households own jewelry, and the merchandise. Regarding the Internet, Mr. Destino market has yet to approach saturation. There is a conceded that most luxury brands see it more as a strong trend in women making purchases for them- threat than an opportunity. With the Internet comes selves. Tastes tend toward the traditional and under- the possibility of a gray market of goods offered at stated, with preferences for white metals, including steep discounts, eroded brand images and prestige, stainless steel for watches. Diamond is the most popu- ruptured distribution networks, and threats to estab- lar gemstone, with aquamarine and tanzanite as popu- lished pricing structures. lar colored stones. Mr. Gübelin has observed a change in the attitude of the European consumer, who now Fortunoff feels less obligated to hold on to inherited jewelry and Helene Fortunoff argued that rather than fine jewel- is more apt to update or sell it. Competition is brisk, ry houses influencing the industry at large, business- and low-end European retailers are now using dis- at-large is now the “pied piper.“ She cited the roles

120 SYMPOSIUM PROCEEDINGS ISSUE that auction houses and e-commerce are playing in shaping the industry. The elaborate and expensive marketing techniques employed by auction houses have resulted in $2 billion in turnover, with approxi- mately $700 million in fine-jewelry sales. Auction houses have successfully extended their market share into niches once solely occupied by retailers; and with the acquisition of Butterfield & Butterfield by eBay, auction houses are now extending their territory into A common cyberspace. theme of this Another force to be reckoned with is electronic panel was the home shopping, which currently accounts for 12% of importance of design in industry sales. With more than one-third of its pro- maintaining a competitive posi- gramming devoted to 14K jewelry, the home shop- tion. This diamond and sapphire ping network QVC averages 270,000 customers per panther is representative of the distinc- day. Unlike Mr. Destino, Ms. Fortunoff is a propo- tive designs that are the hallmark of nent of the powers of cyberspace to sell product and Cartier Inc. promote brand identity and message. Her company is currently rebuilding its Web site to include an online bridal registry, complete with catalog and online ordering capabilities. Plans for Fortunoff include “embracing new retail modalities to expand nationally to jewelry as a status symbol, but it also must be fash- without real estate” and courting “the new consumer ionable, enjoyable, and adaptable to their lifestyles. . . . to overcome the competition’s simplistic depen- dence on price alone by extending the ‘Trust Asprey & Garrard Fortunoff ’ franchise.” Terry Davidson admitted that while Asprey & Garrard may have little name recognition in the U.S., Van Cleef & Arpels his company represents the recent merger of two of Henri Barguirdjian recalled that the luxury goods the oldest purveyors of luxury products in the United market once catered only to the super-rich, but today Kingdom. With the two houses combined, Asprey & this market does more business than ever before by Garrard represents more than 400 years of custom appealing to a broader base. That is because jewelry work in leather, objets d’art, silver, and jewelry. Their continues to function as a universal symbol of love, in-house designers and workshops allow the firm to and this will not change in the next millennium. The continue the production of one-of-a-kind goods. independent jeweler will continue to be the key con- Today’s customers are even more discerning than tact in the transaction, providing the customer with a their predecessors were. Well-traveled and inspired by level of intimacy that is not found in other selling the different cultures they encounter, they bring their environments. Mr. Barguirdjian offered two key informed tastes to bear when selecting jewelry and ingredients for business growth: integrity and creativi- other luxury goods. In a video clip, Mr. Davidson ty. Clients today are more informed about their pur- demonstrated Asprey & Garrard’s recently launched chases, but they are also more confused by the vast branded diamond, the Eternal Cut, which is being array of information available regarding products, offered in a range of jewelry styles. As world treatments, and brands. Absolute disclosure about the economies gain strength, the future for fine jewelry is product is essential, as is impeccable customer service. promising. But to stay competitive, Mr. Davidson With shrinking margins in loose stones, the second warned, “We must supply innovative product that is ingredient for business growth becomes the creativity manufactured, merchandised, and marketed to the and originality of designs. The new breed of client is highest standard, and offer our clients a service that is younger, and price is not an issue. These clients look next to none.”

GEMS & GEMOLOGY FALL 1999 121 Marketing Pearl Jewelry In the Next Millennium

PANELISTS Koichi Takahashi Mikimoto, New York Frank Mastoloni Frank Mastoloni & Sons, New York Eve Alfillé Eve J. Alfillé Ltd., Evanston, Illinois Gina Latendresse American Pearl Company, Nashville, Tennessee Ralph Rossini Honora Ltd., New York

HE PRESENTATIONS BY THESE PANELISTS market. He retraced some of Kokichi Mikimoto’s seemed to have one theme in common: The footsteps, from the first cultured pearl recovered by Tpearl market is thriving. With the many varieties Mikimoto's wife Ume in 1893, to the pearls he gave and price points of pearls today, there is something for to celebrities such as Marilyn Monroe. Mr. all segments of the market in the next millennium. Takahashi explained how Mikimoto’s promotions still incorporate these celebrities and reported that Strategy for the 21st Century the company’s plans for the future include also sell- Koichi Takahashi began his presentation with a ing gift items such as pens, scarves, vases, and watch- look back at the beginnings of the cultured pearl es. Quality, craftsmanship, design, and artistry are all important in the promotion of pearls today and will be important in the future. A wide variety of cultured pearls will provide exciting opportunities for consumers in the 21st century. These The Benefits of Quality strands show some of the colors available for South Sea Among the first to market cultured pearls in the cultured pearls. Photo courtesy of Mikimoto. United States was Frank Mastoloni. In the 1950s, natural pearls were hard to come by, so he decided to enter the cultured pearl market. It was a great alternative to imitation pearls, as the cultured pearls were actually grown in the sea. Mr. Mastoloni described the many products available today, includ- ing Chinese freshwater, South Sea, and Tahitian cul- tured pearls—and how these products can be pro- moted to all market segments. There are fine-quality pearls in all varieties. He emphasized the importance of product knowledge, noting that if different quali- ties are explained to customers, they will choose the better-quality goods. In closing, Mr. Mastoloni offered the maxim “Quality is long remembered after price is forgotten.”

Importance of Design Eve Alfillé predicted that designer pieces will play an important role in preventing cultured pearls from

122 SYMPOSIUM PROCEEDINGS ISSUE conch "pearls," melo melo "pearls," American natu- ral and cultured pearls, Domé pearls and, cultured mabé pearls from French Polynesia, Mexico, and New Zealand. Ms. Latendresse emphasized that offering this expanded palette of pearl colors and shapes will keep the retailer’s business fresh.

The Chinese Products “The pearls of the future”: new shapes, new colors, and—best of all—affordable. If you were to ask Ralph Rossini what that statement describes, he would not hesitate to answer, “Chinese freshwater cultured pearls.” Today, a larger audience can own thick-nacred, good-luster pearls at a lower price point. These products come in a wide variety of col- ors, shapes, and sizes, thus allowing for new, fash- ionable creations. During his presentation of a recent trip to the pearl farms in China, Mr. Rossini showed one mollusk that was being implanted with enough pieces of mantle tissue to yield about 40 cultured pearls. China's production for the present year is projected to be approximately 1,500 tons. If the “Specialty” pearls add a distinctive look to creative Chinese pearl farms continue to produce at this rate, Jewelry designs. This brooch, “Earth’s Twilight” by there certainly will be sufficient supply as we move Nina Ward, features an American cultured Domé into the new century. pearl with emerald-cut tourmalines (0.25–1.88 ct) from Brazil, 3 mm Maine tourmalines, and diamonds. Photo courtesy of American Pearl Co. Sales of fine-quality pearl jewelry, such as this parure featuring white South Sea cultured pearls, are becoming a commodity in the next millennium. enhanced through product knowledge. The cultured Before the new varieties of cultured pearls became pearls in the earring and the ring are approximately more readily available, Akoya cultured pearls domi- 13 mm in diameter; photo courtesy of Mikimoto. nated the market. Designs were very basic: round pearls made into strands and stud earrings. According to Ms. Alfillé, the retailer should entice the customer into purchasing all of the different types of cultured pearls now available. Tying in pearl designs with clothing fashions will help increase sales. Designer showpieces enhance the prestige of cultured pearls and attract the upscale customer.

Specialty Products There is great versatility in cultured pearls today because of the many varieties of mollusks in which they are cultivated. But in her presentation, Gina Latendresse went beyond the Akoya, Chinese fresh- water, South Sea, and Tahitian varieties. Other addi- tions to the mix include natural abalone pearls,

GEMS & GEMOLOGY FALL 1999 123 Critical Issues in the 21st Century

PANELISTS Matthew Runci Jewelers of America, New York James Marquart Manufacturing Jewelers and Suppliers of America, Providence, Rhode Island Douglas Hucker American Gem Trade Association, Dallas, Texas Robert Bridel American Gem Society, Las Vegas, Nevada Eli Izhakoff J. Izhakoff & Sons, New York

HIS PANEL OF LEADERS from key seg- education not only for themselves, but also for ments of the industry examined various their staff members and their customers. Tcritical issues that face the retail and guild 3. Skills: A jeweler’s skills are his or her livelihood, jeweler, jewelry manufacturer, and diamond or col- and each jeweler must enhance those skills and ored stone dealer. Although the specific challenges develop a qualified staff, through testing and cer- presented by each panelist differed, they seemed to tification. share a number of common themes, especially the need to build and maintain the industry’s image, to improve staff and customer education, and to Manufacturing Jewelers embrace or prepare for the inevitable change that the In the United States, manufacturing jewelers today 21st century will bring. face some of their most difficult times ever. James Marquart reported that many U.S. firms have lost Retail Jewelers nearly one-third of their workforce, which has result- The retail jeweler, standing directly on the front line, ed in a reduction in domestic and global market share must demonstrate professional core elements to suc- for these organizations. The key to the success and ceed in the new century. Matthew Runci cautioned regrowth of this segment in the coming millennium that the ability to gather unlimited information from lies in several critical areas. One focus must be on the Internet without an informed perspective, com- helping the industry sell its products, which in part is bined with the possibility of diluted branding, could being addressed through consumer advertising cam- ultimately confuse the consumer. Mr. Runci went on paigns that include consumer magazines, billboards, to outline a three-tiered “Millennial Strategy” for the and co-op pieces with clothing manufacturers and retail jeweler. retailers. Another key is to overcome United States trade policies that have hindered the ability of manu- 1. Integrity: The retail jeweler must behave ethically facturing jewelers to distribute their products to the and follow rules of professional conduct. Jewelers world market. Mr. Marquart reported that MJSA is must make sound judgments and ethical deci- working with the U.S. government to draft a new sions when confronted with business dilemmas. international trade policy that will reduce or eliminate 2. Knowledge: Jewelers must make a lifelong com- many current tariff-based trade barriers and level the mitment to career development with continuing playing field for the U.S. manufacturing jeweler.

124 SYMPOSIUM PROCEEDINGS ISSUE Colored Stone Dealers The technological and ethical challenges facing the col- ored stone market are certainly not news, but advances in treatments and synthetics continue to emerge at a record pace. Douglas Hucker stressed that ethics regarding disclosure, and education to stay on top of technology, will guarantee the success of colored stone dealers and retailers in the future. Mr. Hucker also added that today’s consumer, being more informed about colored stones, is looking to make a more serious colored stone jewelry purchase. It is still up to the col- ored stone retailer, however, to fill in the information gaps, and to promptly answer the variety of questions that consumers are sure to ask. Every salesperson must have the education to answer technical questions, but it is equally important to promote and maintain the beauty and romance of colored stones, which are what attract the customer in the first place.

Guild Retailers Robert Bridel provided valuable insight into how guild retailers can elevate their businesses through innovative marketing, the use of available technology, and customer service. Some of the marketing strate- gies Mr. Bridel proposed include one-on-one mar- keting to individuals, the implementation of nonjew- elry events—such as concerts or book readings—to Trade organizations not only foster business integri- bring potential new customers into a store, and ty, but they are also a source of knowledge for staff adherence to strict standards for advertising and pric- members and their customers alike. ing. The use of new technology could promote and support a business. For example, a Web site can show product samples or even sell products, profile cus- tomers on-line, or strengthen operations and manage- the new millennium, and that small and medium-size ment internally. Mr. Bridel suggested that the jeweler businesses will need to face the likelihood of shrinking “make a friend of every potential customer,” then distribution channels, or ultimately they will risk elim- pamper those customers with personalized service and ination. He further stated that although there are new clear, reasonable selling practices. critical issues facing diamond dealers, this resilient industry has regularly thrived in the face of seemingly Diamond Dealers insurmountable challenges. Laboratory grading reports A positive light was shed on the state of the diamond and price sheets, which were rejected in the 1970s and industry by Eli Izhakoff, former head of the World ‘80s, have now become almost indispensable tools. Federation of Diamond Bourses. Mr. Izhakoff report- The new challenges seem to be treatments and pro- ed that supply and demand for diamonds seems to be cesses, as well as the trend toward diamond branding. running hand-in-hand, with Far East markets experi- Mr. Izhakoff believes that the industry will respond encing a resurgence. He cautioned, however, that the accordingly and learn to accept—and even embrace— large diamond companies will become even larger in the changes on the horizon.

GEMS & GEMOLOGY FALL 1999 125 Marketing Opportunities in the 21st Century

PANELISTS Susan Jacques Borsheim’s, Omaha, Nebraska Leopoldo Poli La Nouvelle Bague, Florence, Italy Andrew Johnson The Johnson Family’s Diamond Cellar, Dublin, Ohio Scott Kay Scott Kay, Inc., Hackensack, New Jersey Laurence Grunstein Citizen Watch Company, Lyndhurst, New Jersey

S WE MOVE INTO THE NEW millennium, profound and significant events, emotions, behavior, jewelers want to know where the best music, and the words of the time in which we live— A prospects will be found for new products, and then recreate them in a stylized figure. Thus, the greater market share, and—of course—increased sales. jewel truly reflects the period in which it was created. This spirited panel looked at maximizing opportuni- This is accomplished by innovation, which he ties in five key categories: colored stones, gold jewel- describes as ably interpreting and expressing the high ry, diamonds, platinum, and watches.

Colored Stones Attractive promotional materials make useful marketing tools. At Borsheim’s, the jewelry What tools are available to make customers more catalog is available for in-store use, as well as aware of, and comfortable with, colored stones? through direct mail and on the Internet. Photo According to Susan Jacques, a well-trained sales staff courtesy of Borsheim’s. and the use of the Internet can both inform and sell. Today, attractive catalogs can serve many purposes: in-store use, direct mail, and even an electronic ver- sion on your company’s Web site. Her experience has shown that: (1) educated customers are far more likely to make a purchase, (2) customers will sometimes become fascinated about treatment processes rather than consider them a negative, and (3) beauty is often more important than whether the gemstone being offered is one of the “big three” (ruby, sapphire, or emerald). Because of the greater interest in, and avail- ability of, many colored gems, they will continue to be important in the future.

Gold Referring to an item of jewelry as a contemporary design simply because it is manufactured in the pre- sent is both unfortunate and inappropriate, according to Leopoldo Poli. He prefers to assimilate the most

126 SYMPOSIUM PROCEEDINGS ISSUE Consumer preference for beauty is contributing to the popularity of colored gemstones other than ruby, sapphire, and emerald. The 18K white and yellow gold rings shown here were designed by Jean-François Albert, and feature aquamarine, yellow beryl, tanzanite, pink and green tourmaline, and amethyst—some of which are accented with diamonds. Innovative designs, such as the “SignatureFit” self-sizing mechanism in these rings, enhance customer satisfaction. Photo courtesy of Jean-François Albert.

est values of out time, not by repeating stylistic codes. (50/50); to white metal with little yellow accents; to Ultimately, the designer needs to be the creator of the all-white platinum jewelry that we’re seeing customer satisfaction. today. “Platinum is to metal what diamonds are to gemstones” was repeated throughout his presentation. Diamonds He credited the bridal market with “driving the fash- A common theme found in Andrew Johnson’s pre- ion end of our business.” In Mr. Kay’s opinion, white sentation was the importance of modern technology metal will overtake yellow as the color of choice in in the future of marketing diamonds. Expanding mar- the 21st century. kets in Asia, India, South America, and Eastern Europe can be reached by means of the Internet, Watches telecommunications, and overnight shipping. By using According to statistics offered by Laurence various combinations of traditional and modern mar- Grunstein, last year approximately one in four keting techniques, the retailer can reach all generations Americans bought a wristwatch. Narrowing the dis- of consumers. In addition, use of demographics makes cussion to watches over $50, he reported that 17.6 it easier to track customer lifestyles and life events for million such watches were sold in the U.S. in 1998, which diamonds can be packaged. As diamonds with jewelry stores responsible for approximately 40% become more of a commodity and profit margins con- of these sales. These numbers are expected to increase tinue to shrink, massive amounts of information will as jewelers take advantage of brand recognition, prod- be needed to remain competitive in the future. uct training, customer support, point-of-sale materi- als, customizable displays, advertising, and co-op Platinum advertising. For most jewelry stores, Mr. Grunstein From a fad to a trend: Scott Kay traced the recent recommended that they carry five or six watch brands popularity of platinum jewelry from the 1980s, when that do not overlap one another and that best fit the jewelry was primarily all yellow; to two-tone jewelry customer profile of their store.

GEMS & GEMOLOGY FALL 1999 127 The Importance of Electronic Networking in the 21st Century

PANELISTS Jacques Voorhees Polygon Network, Dillon, Colorado Martin Rapaport Rapaport Diamond Report, New York Fred Mouawad Precious Link, Bangkok Dona Dirlam Gemological Institute of America, Carlsbad, California Richard Drucker Gemworld International Inc., Northbrook, Illinois

he Internet, a New Distribution Channel must keep these shoppers coming to his or her store, Citing recent research conducted by the all the while taking steps to evolve in an Internet TGannett Group of newspapers, Jacques Voorhees environment. Retailers, too, can use the Internet for noted that 83% of U.S. consumers plan to buy some- sourcing, which will lower their own cost of goods. thing online in the next 12 months. He added that The Power of a Virtual Marketplace electronic commerce revenue could swell to as much as $3.2 trillion in 2002. Against this statistical backdrop Despite the unprecedented growth of the digital of extraordinary growth, Mr. Voorhees described the economy, Martin Rapaport believes that we have three basic types of jewelry Web sites now online: only witnessed the beginning of an Information Technology Revolution. This revolution promises to • Information-only Web sites, where no actual bring about a historic shift in society, economics, and commerce is conducted. virtually every aspect of our lives. In fact, what we are • Commerce sites directed to the consumer, with seeing now is so powerful that none of us fully real- searchable databases that list certificate specifica- izes how big it is. The spectacular growth of high- tions and pricing information. tech stocks is only the first indication of a massive economic shift in the balance of power. • Commerce sites restricted to the trade only. According to Mr. Rapaport, having your compa- Trade passwords are required to access these sites, ny’s products or product information available on the a measure designed to protect the retailer. Web is no longer optional. Denying your company Traditionally, products were warehoused and sold an online presence, he warned, is comparable to tak- locally at the point of sale. This arrangement accom- ing down your sign from a storefront, or removing modated the immediate transfer of money and mer- your company’s listing from the phone book. He chandise, as well as any first-hand product knowledge advised being careful with how the information is that was needed. Along with the advent of overnight used—think about it strategically, and incorporate it delivery service and payment by credit card, the into every aspect of your business. While information Internet has transformed the traditional distribution is power, he explained, well-managed information is system in all industries by making the ordering, pay- even more power, and information that is used to ment, and delivery processes almost instantaneous. reach out and market is awesome power. Mr. Voorhees emphasized that the physical store In closing, Mr. Rapaport predicted that the will never disappear altogether. Some consumers will Internet’s single most profound impact will be to continue to shop in the traditional store as long as reduce the cost of retailing. He urged the audience to concerns exist over credit card security and the relia- take advantage of “the greatest opportunity that has bility of online product information. The retailer ever come to the diamond industry.”

128 SYMPOSIUM PROCEEDINGS ISSUE The Benefits of Network Interaction Ms. Dirlam also offered some perspective for infor- Fred Mouawad encouraged traditional retailers to use mation providers: online networks to compete with the new breed of vir- • Keep in mind your audience, and the purpose of tual retailer, the “giants.com” who are eroding retail your Web page. Remember to check grammar margins by buying directly from manufacturers and and spelling. selling directly to consumers. Mr. Mouawad defined a • Copyrights: In the Information Age, how do you network as an information service that is accessible maintain rights to information? Copyright laws through connected computers and provides a medium have been strictly enforced in the past, but will for trading and information exchange. By using the that hold true in the 21st century? resources of an online network, retailers can centralize their entire stock and offer it to a worldwide audience • The conservation and archiving of information “just in time.” The resources of a network include: will take on an even more important role. Where will all of this information be 50 years • Community—Members are encouraged to share from now? information. Forums are available for voicing opinions, asking questions, and making contacts. Integrating Traditional Media and Networks • Trading—Inventory is readily available and can The ability to provide more information to customers be uploaded immediately. is the best use of the Internet, according to Richard • Directory—Members are able to find people, Drucker. Pure information is usually the first reason a searching by product category, region, or com- person goes to the Internet; purchasing is secondary. pany name. The directory allows the retail store Although Web sites are capable of providing much to broaden both its customer base and its supplier more information than single-page magazine ads, for base. instance, Mr. Drucker recommended using traditional media to get people to your site. Magazine ads should • Services—Members are offered a news center always list the Web site. Banner advertisements and that keeps them informed about the industry, as links from other Web sites are effective ways of draw- well as advertising services. ing people to your own. Likewise, selling advertising Mr. Mouawad recommended that retailers check space on your own site is a good source of revenue. with their various trade associations to see how they Mr. Drucker pointed out that developing a cor- are participating online. porate Web site can be relatively easy and inexpen- sive. A company can develop a Web site on its own, Evaluating the Message and the Messenger or else it should set aside some money from its bud- A more democratic flow of information exists today get. In his opinion, money spent on the Internet is than ever before. While this is undoubtedly a positive the most cost-effective investment a business can aspect of the Internet, Dona Dirlam cautioned that make. The site itself does not have to be sophisticat- we face the increasing difficulty of assessing these ed—but it does need to be up-to-date, so that visitors countless layers of information. Accordingly, Ms. will have a reason to return. Dirlam presented the following strategy for information Once people reach your Web site, it is important to evaluation: keep them there. To do this, Mr. Drucker recom- • What is the purpose of the information that is mended that companies use a clear and simple screen provided on a particular Web site? Is it intended design. Keep in mind the 60-second rule: You only have to inform or to sell? one minute at the most to keep people interested. Acknowledging the widespread flow of misinfor- • How up-to-date is it? Timeliness can be critical. mation via the Internet, Mr. Drucker recommended Check the date of the site, and the dates on the using this problem to your advantage by openly information given. addressing it for your customers. Doing so gives you • Is the Web site more useful and efficient than an excellent opportunity to educate them and earn other resources (e.g., a reference librarian)? their trust.

GEMS & GEMOLOGY FALL 1999 129 War Rooms

Branding War Room

PANEL Elizabeth Chatelain MVI Marketing Ltd., Los Angeles Sheldon David W.B. David & Co., New York Esther Fortunoff Fortunoff, Uniondale, New York Eli Haas Diamond Dealers Club, New York Scott Kay Scott Kay, Inc., Hackensack, New Jersey Steven Lagos Lagos Inc., Philadelphia, Pennsylvania Al Molina Molina Fine Jewelers, Phoenix, Arizona Glenn Rothman Hearts on Fire, Boston, Massachusetts

MODERATOR Whitney Sielaff Publisher, National Jeweler

ith few exceptions, the use of product name brand. Essentially, they argued, a product must branding as a key marketing tool has been distinguish itself from others in intrinsic value before W a relative latecomer to the fine jewelry consumers will buy into it. Cartier's Ralph Destino industry. Unlike luxury watches, for example, which described a brand as a company's signature pledge of appeal to consumers largely by manufacturer name, quality—a solemn, mutually understood contract gems and precious metals have traditionally engen- between buyer and seller. dered desire through their own inherent qualities. However, finished jewelry was not the main area Product branding in fine jewelry has developed of interest among the audience. Over the past two with the emergence of "designer" jewelry. The years, there has been virulent debate concerning heightened consumer recognition of designer brands, efforts by De Beers to brand loose polished diamonds. such as those of New York's David Yurman or ses- Moderator Whitney Sielaff briefly outlined the histo- sion panelists Stephen Lagos and Scott Kay, has ry of these efforts. London-based De Beers has been spawned a new wave of companies seeking to echo providing and promoting “De Beers” diamonds at a their success. several-unit retail chain in England under a pilot pro- At the heart of the issue in the jewelry industry is gram that was announced in January 1999. The dis- what appears to be a conflict between branded prod- tinction of these branded diamonds lies in advertising uct and efforts by individual retail jewelers to establish and a microscopic inscription on their tables that can themselves--their own store names —as the principal be read only with high magnification. brand. This sets the stage for potential confusion Recently, De Beers launched a global initiative within the minds of consumers in instances such as involving similarly “branded” stones that are sold as a print or televised advertisements. A retailer may be “limited Millennium edition.” A dozen or so careful- faced with weighing the relative importance of its ly selected De Beers customers have received the own name vis-à-vis a name product when determin- privilege of selling these stones, which appear to be ing which angle to emphasize. fetching a generous premium. Diamond dealers such The principal bone of contention in jewelry as panelist Sheldon David have reported sell-through branding arose when Scott Kay intimated that per- of their entire inventories, even before they have ceived image, perhaps to the elimination of all other received the goods. factors, is of utmost importance. Other panelists Many in the diamond community see the quickly rallied to the concept of product quality as Millennium diamonds as a test of the salability of the being necessary for establishing and maintaining a De Beers name in America, the world's largest con-

130 SYMPOSIUM PROCEEDINGS ISSUE suming market for gem diamonds. Panelist Eli Haas The two-hour session fell far short of exhausting argued that such efforts by De Beers could eventually the topic of branding. In the end, however, it divide the trade into “haves” and “have-nots.” appeared that the gem and jewelry industry is stoical- Essentially, a small group of selected De Beers cus- ly embracing the belief that change of this nature is tomers could control the De Beers diamond franchise, imminent. Suppliers and retailers alike will find while all other dealers wallow in a second-tier market themselves in a position where survival demands of nonbranded product. evolution.

“In the end, it all comes down to the customer: What the cus- tomer wants, what the customer is demanding. And the customer is asking for brands—brands to give them confidence, brands to give “I think that branding is them consistency.” an excellent idea—for De Beers. For the rest of us in the industry. . —Glenn Rothman . . I think it spells a tremendous “I certainly think that while disaster.” De Beers has a brand name that is —Eli Haas about mining, or diamonds, or love, I’m not sure that they have a brand of diamond that anyone associates with the product.” “Most of you think you —Esther Fortunoff have a brand, and the reality is you don’t. A brand is the instant ability to identify with and “Everybody’s obsessing about about a name. For example, if I said,‘Coca-Cola,’ De Beers, but the last I heard this is almost everybody in this room could either taste America, and it’s the land of competi- tion. What’s to stop all of us from it, smell it, visualize the can it comes in, making one brand and another brand, visualize the last time they and 20 or 30 brands. It doesn’t have to be a De Beers brand. Why are we so bought it.” afraid of De Beers?” —Sean Cohen, —Elizabeth Chatelain Rand Diamond Cutting Works

“De Beers is not saying that they’re going to brand every diamond. They are lending their name, their integrity, to a dia- “I challenge anybody in this mond of a special quality and a special color, room to tell me that they don’t make which they feel will . . . bring a value added money on David Yurman. The prod- to their product that [retailers] will be uct sells, it turns out the store.” able to sell in their stores.” —Scott Kay —Sheldon David

GEMS & GEMOLOGY FALL 1999 131 Appraisals War Room

PANEL Cos Altobelli Altobelli Jewelers, Hollywood, California Anne Blumer State Farm Insurance Company, Bloomington, Illinois Al Gilbertson Gem Profiles, Albany, Oregon Ralph Joseph The Jewelry Judge of Princeton, Princeton, New Jersey Anna Miller Master Valuer Program, Pearland, Texas Don Palmieri Gemological Appraisal Association, Pittsburgh, Pennsylvania Kirk Root Kirk Root Designs, Austin, Texas Joseph Tenhagen Joseph Tenhagen Gemstones, Miami, Florida

MODERATOR David Federman Executive Editor, Modern Jeweler

oderator David Federman kicked off the knows better and puts together an organized decep- War Room by asking the panel to name tion against the public.” M the biggest problem (from a consumer After Anna Miller, Joseph Tenhagen, Anne perspective) in appraisals today. The overwhelming Blumer, and Kirk Root related “horror stories” of consensus was that using overvalued appraisals—par- grossly inflated appraisals, the role of insurance com- ticularly overstating color and clarity—as a sales tool is panies emerged as a topic of debate. From the audi- the most significant problem. Al Gilbertson and Cos ence, Gary Wright contended that jewelry stores, Altobelli, however, cited a lack of formal education appraisers, labs, and insurance companies are “co- on the part of some appraisers. Ralph Joseph coun- conspirators” in the inflated appraisal. Ms. Blumer tered, “Ignorance can be cured much more easily denied the accusation, stating that agents, underwrit- than chicanery. What offends me and what I think is ers, and claims representatives are not gemologists— disgraceful in this industry is when the appraiser rather, they must rely on jewelers and appraisers for accurate information. Ms. Blumer mentioned an in- house training program currently in development at Ronald Harder outlines Jewelers Mutual Insurance State Farm Insurance that would establish appraisal Company’s policy on accepting appraisals. and appraiser criteria for company employees. A turning point came when Cecilia Gardner of the Jewelers Vigilance Committee rose from the audience to speak on the enforcement of ethical stan- dards for appraisers. Describing the disciplinary code she is subject to as an attorney and a member of the bar, she endorsed the establishment of a bar-like gov- erning board through which the appraisal industry would police itself. The plan received widespread support from War Room participants and audience members, and the closing discussion turned to the topic of the educational standards that should be set by such a governing body. Most agreed that the stan- dards already exist, but the more difficult matter is enforcing them throughout the appraisal industry.

132 SYMPOSIUM PROCEEDINGS ISSUE “I’m not in the insurance “Every small Israeli jeweler business, but insurance is a business. knows that Princess cut will be bought They don’t want to reject a lot of appraisals. probably 40% less than the list, and then— In many cases, the value is what they use to very naively—three times this value will be assign premiums. So they’re normally put on top to try and sell it. In my opinion, not too concerned unless it looks that is not fraud. . . . If you don’t give outrageous. It’s a business.” guidelines to the industry, you will —Joseph Tenhagen never solve the problem.” —Menahem Sevdermish, “The courts are friendly to Menavi International, Ltd. consumers, and if they knew what was going on in our indus- try they would not be very friendly to us at all.” We have inflated credentials. —Don Palmieri “ We have inflated grades, and we have inflated appraisals. How much fraud do “The final proof we want to perpetrate on the consumer comes when you have a claim. In our case, what we do is replace it before we lose all of their confidence? with the jeweler who sold it, and that These exposés could run helps create this bond between the cus- tomer and the jeweler. We really don’t every night.” have that many problems with the —Don Palmieri appraisals that we receive, but we do question quite a few.” —Ronald Harder, Jewelers Mutual Insurance Company “The minimum is appraisal theory and practical knowledge in our field. There’s no question that there are people appraising today who don’t have a clue about gemology.” —Al Gilbertson

Cecilia Gardner: “Is it ever ethical for a “The only time we’re jeweler who sells a jewelry item to also provide going to clean up the situation to that consumer a document called is if you can’t practice apprais- an appraisal?” ing unless you’re empowered Kirk Root: “I’m a manufacturer, and to do so by a bar society. The I have copyrighted items. Nobody is more quali- word ‘appraisal’ should belong fied than I am to appraise that piece, because I sell to the profession, and not to it every day for a certain price. That piece is the practitioners.” appraised for exactly what it’s sold for —David Federman at the retail price.”

GEMS & GEMOLOGY FALL 1999 133 Diamond Cut War Room

PANEL Eric Austein Leo Schachter Diamonds, New York Al Gilbertson Gem Profiles, Albany, Oregon William Goldberg William Goldberg Diamond Corp., New York Niels Ruddy Hansen Niels Ruddy Hansen Aps, Brondby, Denmark Ilene Reinitz GIA Gem Trade Laboratory, New York Robert Speisman Lazare Kaplan International, New York Richard von Sternberg Eight Star Diamond Co., Santa Rosa, California

MODERATOR Chaim Even-Zohar Publisher, Mazal U’Bracha

oderator Chaim Even-Zohar opened the Dr. Reinitz replied, “It’s not fair to say that we War Room with a brief background dis- changed our minds.” She went on to explain that M cussion of Marcel Tolkowsky’s calculations with the evolution of computer technology, it was of “ideal” proportions, and the implications of GIA’s time to reevaluate the complexities of cut and appear- 1998 diamond cut study (Gems & Gemology, Vol. 34, ance with tools that Tolkowsky did not have access to No. 3, pp. 158–183). His first question was for Dr. 80 years ago. Reinitz: “Apparently GIA has reversed itself [on Following a brief skirmish over the use of the term Tolkowsky] . . . . Why did GIA change its mind on Ideal and whether such a cut actually exists, two the Ideal Cut?” opposing sides quickly emerged—what could be termed “Idealists vs. Realists.” The Idealists, led by Mr. Goldberg and Mr. Speisman (and supported by Retail jeweler Gary Wright of Phoenix, several retailers from the audience), denounced the Arizona, argues that a cut grade should be cut quality of many diamonds on the market today. available on diamond certificates. Insisting that diamonds should be cut for maximum beauty above all other considerations, they called on cutters to elevate their standards. Behind Mr. Austein, the Realists contended that it is economically unreal- istic to do so. Consumer tastes and spending resources vary—some prefer quality, some prefer value —and it is the industry’s responsibility to meet, rather than dictate, the demands of the market. Next, Mr. Even-Zohar guided the War Room into a discussion on cut grading. While not everyone on the panel or in the audience supported the idea of including a cut grade on diamond certificates, those who did generally agreed that such information would have to be conveyed to the public in a way that could easily be understood.

134 SYMPOSIUM PROCEEDINGS ISSUE “I’d like to change the name of this room from War Room to Love Room, because I think it’s important . . . that we love what we’re selling.” “We can’t tell yet whether there’s — William Goldberg “We’re in an any one set of proportions that are radically, information-overload obviously better at making a pretty, shiny, bright society. We’re into paper. dispersive diamond than other proportions. We’re into numbers, we’re into This problem is not yet solved . . . . It’s definitive pockets . . . People are still an open question.” asking for information, —Ilene Reinitz, let them decide.” ON GIA’S DIAMOND CUT STUDY —Gary Wright, Gary W. Wright Co. “It’s rather astonishing on PROPOSING THAT A CUT GRADE the eve of the 2nd millennium that BE INCLUDED ON CERTIFICATES we’re basing some of the most important deci- sions in our industry on . . . a master’s thesis written in 1919. If you’re going to set a “This has all stepped up standard, do it right. “The world has in direct proportion to the ” —Eli Haas, different tastes, popularity of Ideal cut, as if ON THE INFLUENCE OF TOLKOWSKY and [the Ideal cut] may there’s a group there that says, very much be an ‘This is getting too big.’ When American thing.” it was less than one percent —Chaim Even-Zohar and it was Lazare Kaplan, it was okay.” —Robert Speisman “The difference is that the salesperson in the shop has changed. . . . Now we have an industry where the sales force moves around. And you have a sales force that has no knowledge. So therefore “One of the concerns that the only way they can sell is to have numbers. What we I have is that a lot of the stones that really ought to do is get the sales force back to are on the market at the moment aren’t loving what they sell.” Ideal cut. Not only are they not Ideal cut, — Doug Garrod they’re really Lousy cut. I suggest to you all Gemmological Association and Gem Testing that if we all improve the make of diamonds Laboratory of Great Britain above a certain line, above a certain point, then we can actually in- crease the market size for all diamond jewelry.” —Garry Holloway, Precious Metals

GEMS & GEMOLOGY FALL 1999 135 Disclosure War Room

PANEL Jeffrey Fischer Fischer Diamonds, New York Nanette Forester American Lapidary Artists, Los Angeles Esther Fortunoff Fortunoff, Uniondale, New York Cecilia Gardner Jewelers Vigilance Committee (JVC), New York Mary Johnson GIA Gem Trade Laboratory, Carlsbad, California Roland Naftule Nafco Gems, Scottsdale, Arizona Francesco Roberto Capellaro & Co. S.P.A., Milan, Italy George Rossman California Institute of Technology, Pasadena, California

MODERATOR Cheryl Kremkow Editor, Modern Jeweler

oderator Cheryl Kremkow launched the drilling, which although permanent and not requiring session with a round-table discussion on special care, the industry felt needed to be disclosed. M the U.S. Federal Trade Commission The FTC has accepted the petition, and has proposed (FTC) rules on disclosure of gemstone treatments and altering the Guides to require disclosure of treatments enhancements. In the FTC’s original (pre-1996) in diamonds as well as colored stones even if they are Guides for the Jewelry Industry, all information about permanent, require no special care, and are unde- color alteration of diamonds and colored stones had tectable—as long as they have a significant effect on to be passed on to the consumer. In 1996, the Guides the value of the gemstone. were revised to state that if the alteration is perma- The War Room panel agreed that the retail jewel- nent, disclosure was not necessary. However, the JVC er is responsible for providing treatment information recently initiated a petition to change the FTC’s to consumers, but also admitted that full disclosure is Guides to reflect the industry’s consensus on laser not yet a reality throughout the trade. Questions were then directed to those in the industry who deal with laboratory grading reports and appraisals: How are Cheryl Kremkow and the panel listen as Tom they going to address the disclosure and valuation of Chatham offers his opinion on the topic of disclosure. treated gemstones, especially diamonds? While the colored stone industry has been dealing with disclo- sure for years, only recently has the issue come to the forefront in the diamond industry. Fueling the discus- sion was the controversy over Lazare Kaplan Inter- national’s marketing (through its Antwerp-based sub- sidiary Pegasus Overseas Ltd.—POL) of diamonds treated by an “undetectable” process. Although all seemed to agree that disclosure was essential, there was disagreement on the approach that should be taken. As the audience became embroiled in the issues, two general positions emerged: (1) those who felt it important to state upfront that there is a treat- ment, and (2) those who preferred to disclose on a more cautious, need-to-know basis.

136 SYMPOSIUM PROCEEDINGS ISSUE “I need to know and I think every consumer needs to know what’s been done to their stone . . . . It’s really okay to tell somebody [that] a year or two years from now your stone will need to be retreated, re-enhanced. “The important issue here is to Bring it back and we’ll take care of it for you. . . . provide the information to the consumer at the It’s the responsibility of a retail point of sale. . . . One thing that retailer jewelers jeweler to do that.” must do is train their sales associates.” —Nanette Forester —Cecilia Gardner

“For the longest time it was Reality check. There’s going to be very difficult to take the ‘sin’ out “ of synthetics. . . . now synthetics an article in the New York Times that says ‘Diamonds are looking to have much more integrity.” are treated’ . . . And if you’re not going to disclose now, —Gerald Manning, when are you going to disclose? When they put your Manning International picture in the New York Times and say ‘Look at these guys’?” —Martin Rapaport, “It just seems a little bit Rapaport Diamond Report premature to start telling every single consumer that every single diamond might have been treated for color. I believe in disclosure, but it seems like it doesn’t totally make sense.” “I think that everything should be disclosed. And if you don’t —Esther Fortunoff know that it is treated or enhanced, then you have to assume that it is.” “This treatment is here, —Roland Naftule Lazare Kaplan is not going to wait and GE is not going to wait for any- body. . . . The only thing you can really “It was not as if Lazare Kaplan do is support the hell out of tried to sneak something and got away GIA’s basic research.” with it. We put a moratorium on the goods at our expense in order to do the —Martin Rapaport right thing— to have a dialogue with the industry. . . . Had we wanted to sneak one by, we easily could have.” —Robert Speisman “I take the attitude that if you are withholding something—that is, if you are not disclosing it—then perhaps you are trying to deceive me. . . .” —George Rossman

GEMS & GEMOLOGY FALL 1999 137 Poster Session Abstracts

A Marketplace of New Ideas

Coordinators: James E. Shigley and Dona Mary Dirlam

138 COLORED STONES 155 DIAMONDS 160 GENERAL GEMOLOGY 164 GEMSTONE MARKETING 168 JEWELRY 171 PEARLS 173 SYNTHETICS AND SIMULANTS

COLORED STONES

Copper Tourmaline from Paraíba, centric bands radiating outward from the center of the Brazil: Reopening of the Mine, pegmatite field (Roy et al., 1964). Superimposing the plot of Cu-bearing tourmaline occurrences on the map Regional Exploration creates a narrow band within this concentric zoning Heitor D. Barbosa, Heitorita Tourmalina da Paraíba pattern. This distinctive imprint of the metals in the Mineração, Paraíba, Brazil; and Brian C. Cook earth’s crust was apparently generated from the radiant ([email protected]), Nature’s Geometry, heat of the mobile plutonic emplacement some 520- Graton, California plus million years ago. For eight years, from 1990 on, general strife con- Since its arrival on the market in 1989, the vivid and sumed the mine; the haphazard and reckless excava- uniquely colored tourmaline from Paraíba has become tions done without control of the original founder, legendary. The coloration is produced by traces of 2+ Heitor Barbosa, proved both costly and futile. In 1998, copper (Cu ), which was previously not known to be however, the legal controversy was resolved and a coloring agent in tourmaline (Fritsch et al., 1990). As Heitor Barbosa reactivated the mine with Sergio of this writing, only one location has produced excep- Barbosa. The land adjacent to the mine was also tional gem material: a single small hill, the backdrop opened up for exploration at this time, and a more sys- for the village of São José da Batalha in Brazil’s rugged tematic program of exploration and mining is now northeast state, Paraíba. Subsequent to this first discov- under way. ery, other pegmatites in the region have been found to contain tourmaline that is colored by copper, although R EFERENCES not of equal gem quality. When these occurrences Fritsch E., Shigley J.E., Rossman G.R., Mercer M.E., were plotted on a geologic map, they were found to Muhlmeister S.M., Moon M. (1990) Gem-quality cuprian- align in a narrow band with a N–NE regional trend elbaite tourmalines from São José da Batalha, Paraíba, Brazil. Gems & Gemology, Vol. 26, No. 3, pp. 189–205. extending some 90 km. Metallic elements found in the Roy L.R., Dotton O., Madon H.L. (1964) Estudos dos Pegmatitos pegmatite minerals of the region—U, W, Ta, Sn, Nb, do Rio Grande do Norte e da Paraíba, SUDENE, Departamento Mn, Be, and Li—formed zoned assemblages along this de Recursos Naturais Divisao Geologia, serie geologia eco- trend. In a simplified view, this zonation forms con- nomica No. 1.

138 SYMPOSIUM PROCEEDINGS ISSUE Gem Vesuvianite and Grossular from the Vata Area, Apuseni Mountains, Romania Corina Ionescu ([email protected]), Lucretia Ghergari, and Antonela Vadan, Babes-Bolyai University, Cluj-Napoca, Romania In the southern part of the Apuseni Mountains, along the upper course of the Cerboaia Valley, there are sev- eral occurrences of vesuvianite, grossular, wollastonite, gehlenite, and Ti-andradite (melanite). These minerals formed within Ca-skarns, through high-temperature contact-metasomatic processes between Upper Jurassic limestones and Lower Cretaceous quartz–monzodiorit- ic intrusives (see figure). Vesuvianite forms transparent, “olive” green, short- prismatic crystals that show a vitreous luster and range This geologic map of the Vata area (after Cioflica, 1960) up to 5 × 2 cm. Despite its attractive color and high shows the occurrence of the gem-quality vesuvianite and luster, the vesuvianite is not suitable for faceting large grossular. Key: 1 —Upper Jurassic limestones; 2—Lower stones, because of the presence of tiny inclusions of Cretaceous clays and sandstones; 3—Mesozoic ophiolites; garnet and wollastonite. The physico–chemical features 4—Upper Cretaceous intrusives; 5—Vesuvianite + grossular of the vesuvianite were investigated by crystallographic + wollastonite + gehlenite + Ti-andradite (melanite) occur- studies, microprobe analysis, infrared spectroscopy, and rences. X-ray powder diffraction analysis. Electron microprobe analyses of a cross-section from each of four vesuvianite crystals were performed The is genetically related to activity, and by Dr. Sidsel Grundvig at the Geologisk Institut of forms lenses that measure 10 –30 m thick and range up Aarhus Universitet, Denmark. The chemical composi- to 0.01 km2 in surface area. tion varied within narrow limits, but did show subtle The genesis of the jasper deposits (i.e., ) chemical zoning. The cell parameters of the vesuvian- began with the accumulation of various detrital frag- ite, obtained by X-ray powder diffraction analysis, are: ments (composed of limestone, andesite, and andesitic a=15.42(1) Å and c=11.70(2) Å. and rhyolitic tuff) in small lakes formed near the vol- Grossular forms translucent, “olive” green, dodeca- cano. Post-volcanic, subaquatic hot springs deposited hedral crystals with a vitreous luster. The calculated cell parameter is a=11.82(5) Å. The grossular crystals are quite large (up to 1.5–2.0 cm), translucent, and This geologic sketch map of the Brad area, Romania, have a fine color. shows (1) the Quaternary deposits, (2) the Neogene R EFERENCE andesitic volcanic deposits, and (3) the jasper occurrences. Cioflica G. (1960) Contributions to the knowledge of the contact phenomena in the Magureaua Vata area (Drocea Mountains) [in Romanian]. Studii Cercetari Geologie Geofizica Geografie, Seria Geologie, Vol. 3, No. 1, pp. 509–518.

Jasper Occurrences in the Brad Area, Apuseni Mountains (Romania) Lucretia Ghergari ([email protected]), Corina Ionescu, and Zsolt Püspoki, Babes-Bolyai University, Cluj-Napoca, Romania In the Apuseni Mountains of western Romania, poly- colored jasper is hosted by andesitic volcanic deposits associated with a Neogene stratovolcano (see figure).

GEMS & GEMOLOGY FALL 1999 139 silica gels between the fragments, and these gels precip- Beaver County, Utah, the deposit is accessible by dirt itated as /. Later, microcrystalline roads from the towns of Milford, Minersville, and quartz (chalcedony) partially replaced the cristobalite. Cedar City. Elevations vary from 6,700 to 7,100 feet The various colors of the jasper are caused by traces of ( 2,042 to 2,165 m ) above sea level. Average tempera- Fe2O3 and MnO2. Mineralogically, the varieties cristo- tures range from 100°F ( 38°C ) in the summer to 10°F balite/tridymite, quartz-cristobalite/tridymite, and (−12°C) in the winter. The ore processing plant is quartzitic were recognized. Several color located about 25 miles (40 km) east of the mine on the varieties of the geyserite were also defined: black, flats west of the Mineral Mountains. brown, red and reddish brown, orange, yellow and The Hodges family worked the deposit as a hobby yellowish white, gray, “ochre,” off-white, and white. mine for 18 years, until 1976, when Mr. Hodges sold These varieties showed systematic differences in their the mining rights of the Ruby Violet property to the mineralogy and, in some cases, texture. Harris family of Delta, Utah. During the next 20 years, the Harris family performed small-scale mechanized Central Asia: A Prime Source of and hand mining from the surface. Gemstones for the 21st Century In 1994, Kennecott Exploration Corp. entered into an “Option to Purchase with Exploration Rights” with Gary W. Bowersox ([email protected]), Geo the claim owners. Gemstone Mining Inc. assumed the Vision, Inc., Honolulu, Hawaii agreement in March 1997. Under this agreement, Central Asia is poised to become a major source of Gemstone Mining has carried out an extensive pro- gems and minerals in the 21st century. At present, gram to sample the red beryl deposit, to assay the sam- Afghanistan, Kazakhstan, Kyrgyzstan, Pakistan, and ple by traditional gemstone techniques of cutting and Tajikistan are supplying the world markets with com- sorting, and to estimate the wholesale prices of the mercial quantities of gem-quality emerald, spinel, ruby, gems. The distribution of values within the deposit is, sapphire, aquamarine, tourmaline, and lapis lazuli. as yet, only partly understood. The decision to under- Other gems being mined on a smaller scale are topaz, take larger-scale mining will depend on the ability to morganite, garnet, and quartz (amethyst, rock crystal, distinguish ore-grade material from waste. It is believed and smoky varieties). that the large-scale mechanized mining and crystal At the 7th Symposium on the Gems and Minerals recovery (of up to 2,000 kg per year) planned by of Afghanistan, held in Tucson, Arizona in February Gemstone Mining Inc. will be successful. 1998, plans were developed to expand geological and gemological studies in Central Asia. Symposium atten- Gemstones and Global Tectonics dees included tribal leaders and miners, as well as rep- resentatives from GeoVision Inc., ERDAS Inc., GIA, Frederick A. Cook ([email protected]), and the U.S. Geological Survey. Detailed mapping Jeffrey E. Patterson, and Robert M. Scarborough, began in Afghanistan during the summer of 1998 using University of Calgary, Alberta, Canada GPS (Ground Positioning System) in conjunction with As world shortages of gem materials become increasing- satellite and radar data that incorporated the latest geo- ly acute in the future, new deposits may be found with physical technology and computer imaging models. techniques that incorporate modern concepts of global During the summer of 1999, another field excursion tectonics. The earth’s outer 100-km-thick outer “shell” using satellite and GPS systems surveyed the emerald is broken into plates that shift, separate, and collide with mines at Panjshir, Afghanistan. A ruby-bearing area in one another. Continents, on which nearly all gems are Tajikistan was also visited, which recently yielded a found, are products of these plate tectonic processes, facet-quality ruby weighing 50.08 ct. A Central Asian which have been active over more than 3.5 billion Gem and Mineral Symposium is being planned for years. The main plate tectonic features or processes August 2000 in Pakistan. applicable to gemstone exploration are the following: 1. Diamonds form beneath ancient cratons (i.e., Red Beryl ancient, thick, stable regions of the earth’s Clint Christenson and Gordon Austin ([email protected]), crust). The source of the carbon was either the Gemstone Mining Inc., Cedar City, Utah deep earth interior or terrestrial material that The Ruby Violet red beryl deposit was discovered and subducted when one plate was overridden by staked by Lamar Hodges in 1958, while prospecting for another. uranium. Located in the Wah Wah Mountains of 2. Rifts where two plates separate provide heat for

140 SYMPOSIUM PROCEEDINGS ISSUE tectonic uplift, volcanism, and the formation of area is divided into four government-controlled tectonic uplift, volcanism, and the formation of regions (Blocks A, B, C, and D). Block B was affected magma chambers (i.e., plutons). Peridot from most by the flooding last year. Prior to the flooding, as the mantle is associated with basaltic volcanics in many as 50 “pits” had been allocated at Block B rift zones, and granitic pegmatites in continental through mining contracts to individual licensed com- rifts are the source of beryl and topaz. panies. When the El Niño rains fell, a surge of water Hydrothermal alteration associated with rifting and mud flooded the pits and invaded the intricate produces red beryl, topaz, and opal in volcanic maze of tunnels. The primitive mining conditions and rocks, and turquoise and opal in sedimentary tools hindered rescue of the trapped miners. Although rocks. the exact number who died may never be known, the 3. As plates separate, ocean basins open until one Tanzanian government has confirmed 77 deaths and plate sinks into the mantle at a subduction some reports indicate that up to 200 miners may have zone. Near a depth of 100 km, melting pro- perished in the flooding. duces subduction magmatism that causes volcan- The government of Tanzania responded to this dis- ism and plutonism. Some sapphires and rubies aster by mandating the construction of “collars” made are carried to the surface in the associated alkali of wood or other durable materials at each pit opening. basalts. Subduction-related granitic pegmatites Many of the pits that I observed did, in fact, have rein- are sources of tourmaline, beryl, and topaz, and forcements. Also, wooden ladders were installed by near-surface granite plutons provide individual mine operators to provide safer access to for emerald formation. some of the shafts, replacing the single ropes that were 4. Subduction culminates when terranes are sutured formerly used as the sole means of entry and exit. along collision zones. Metamorphism of oceanic In response to this tragedy, the American Gem sediments and basalts produces jadeite and Trade Association (AGTA) organized the Tanzanite nephrite, respectively, and these may be uplifted Miners Relief Fund and appointed Philip Zahm chair- near suture zones. Granitic pegmatites may man. Approximately $35,000 has been raised so far, incorporate chromium from suture-zone ocean- which is designated for use to provide medical/rescue ic rocks to form emeralds, and the metamor- training and adequate shelter for the miners. In April phism of continental sediments can form lapis 1999, three emergency medical technician/paramedic lazuli. personnel accompanied Mr. Zahm to Merelani to con- duct a three-day training session for 15 miners invited Using global tectonic concepts, we have proposed that gem pegmatites often occur where a continent is by TAMIDA (Tanzanite Mineral Dealers Association). partly subducted, and that geophysical tools can delin- At the conclusion of the session, the miners successfully eate such regions. This multi-faceted approach led to bandaged, stabilized, and properly lifted a “victim” discovery of a previously unknown topaz pegmatite in from the depths of a 300-m-deep pit. the Yukon Territory, Canada, in 1998. I observed the training activity and had an opportu- nity to speak (through a translator) with several of the Tanzanite Mining Update—A Follow-Up miners; many commented that the training would to the Mine Disaster of April 9, 1998 at tremendously improve the response to any future disas- ters. In the past, the rescuers used a large sack with Merelani, Tanzania holes cut for the legs to hoist injured miners to the sur- Angelique Crown ([email protected]), face. The training taught the rescuers how to stabilize GIA, Carlsbad, California and move such victims to minimize the potential for How did the catastrophic floods that swept the neck or spine injury. Merelani mining area of Tanzania affect the miners, The Tanzanite Miners Relief Fund has also and what is being done to help prevent another such financed the construction of a shelter (140 m2) near the disaster in the future? This update on the mining con- training site on Block D, which now provides a proper ditions and other recent developments is a result of my resting area for the miners and will serve as a refuge visit to the Merelani mining area in late April 1999. during storms. Nestled between the mountains of Meru and During my visit to Blocks B, C, and D, I observed Kilimanjaro in northeast Tanzania, Merelani (also limited mining only at Blocks B and D. The relative called Mererani or Mirarani) is the only commercial quiescence of the mines may have been due to a local source of tanzanite in the world. The Merelani mining holiday. However, Block C was officially closed,

GEMS & GEMOLOGY FALL 1999 141 because the license and mining contract had recently manent police presence was quickly established. Fire been sold to a joint venture consisting of African Gem protection services never did develop, leading to sever- Mining Resources (AFGEM) and Tanzanian nationals al multiple-dwelling conflagrations. by Graphtan Mining, a subsidiary of SAMAX Ltd. (a All of this development came to an abrupt halt in gold exploration company). Although graphite has April 1998, when the government of Madagascar been the main material mined there, commercial pro- banned the export of sapphires from this locality. The duction of tanzanite from the area is anticipated by the ban resulted from pressure by the World Wildlife Fund end of 2000. and other international organizations that strongly objected to the encroachment of illegal miners onto The Short Life and Death the Ankarana Forest Reserve, a national park that was intended to serve as an example of international coop- of a Sapphire Boomtown eration in Eco-tourism and local development. Thomas A. Cushman ([email protected]), Allerton Concomitant with the closure of legal gem exports Cushman & Co., Sun Valley, Idaho came the resounding commercial rejection of Ambondromifehy, Madagascar, was originally hailed as Ambondromifehy sapphire. Only a very small percent- one of the most interesting and richest new sapphire age of the natural material was transparent and an deposits to be found in the last 20 years. Interesting it attractive blue. The overwhelming majority of the was. Rich, too —but not for long. It now seems that rough was opaque, and most of the transparent material Ambondromifehy is the latest in a long line of busted was either too dark or greenish blue. After more than a boomtowns. year of experimentation, no treatment had been found Discovered in 1996, in the Antsiranana Province of by which the stones could be lightened or the green northern Madagascar, the Ambondromifehy sapphires driven off. As a result, the key markets (notably were found in alluvial deposits of an ancient riverbed. Thailand and New York) would no longer accept Early prospecting by local miners brought to light easi- these very plentiful goods. This situation led to an ly recovered (i.e., in gravels only 1–2 m below the sur- immediate decline in both the price of the sapphires face) blue to blue-green sapphires that resembled the and the number of buyers on site. As a result, neither material from northern Australia. This initial recovery of the two international mining groups are still mining of sapphires and subsequent mechanized mining by in the area; at least one of these went bankrupt. Most various commercial groups led to a massive influx of of the independent miners soon left the dying village local artisanal miners. The existing village of 120 to search for opportunity in other regions and with inhabitants soon boasted a population of 7,000, which other gem minerals. soared to 14,000 by early 1998. The September 1998 revocation of the export ban Civic planning and infrastructure never had a gave a very small boost to the fortunes of Ambon- chance to develop in the wild rush of the miners to put dromifehy, but the death knell was sounded when a up some sort of shelter and join the diggings, which new source of alluvial sapphire of much higher quality had spread throughout the region along the ancient (and, therefore, value) was found in the southern region river. The village expanded along both sides of the of the island. Miners immediately began a pilgrimage to national highway; makeshift buildings were construct- this new source. By May 1999, the population of ed of locally available materials, mostly palm leaves Ambondromifehy was less than 2,000, and the once- woven to make walls and thatch for roofs. Water and prosperous village had begun to resemble a ghost town. sewage disposal were supplied by a small local river, resulting in a health crisis. The new city soon acquired Mining and Heat Treatment of “Geuda” a variety of social facilities, such as bars, bordellos, Sapphire at Ratnapura, Sri Lanka video parlors, and casinos. Stores, restaurants, and basic hotels arose. A thriving marketplace for sapphire devel- Branko Deljanin ([email protected]), European oped up and down the main street of this new city, Gemological Laboratory, New York with dozens of small buying booths manned by In the early 1970s, Thai gem dealers began heat treat- Malagasy, Asian, and African buyers. These buyers ing low-quality “geuda” sapphire from Sri Lanka, purchased rough from the artisanal miners who dug thereby supplying large quantities of attractive sap- illegally on claimed, unclaimed, and protected lands phire to the trade. The most important deposits of along and adjacent to the prehistoric riverbed. Crime geuda corundum, all of which are alluvial, are found was initially dealt with in a vigilante fashion, but a per- in the Ratnapura district. Gem-bearing gravel, locally

142 SYMPOSIUM PROCEEDINGS ISSUE referred to as illam, is formed by the erosion of corun- ences such as those of Sinbad the Sailor’s adventures in dum-bearing rocks, specifically, Precambrian char- Tales of Arabian Nights, and Marco Polo’s accounts of nockite gneisses and associated pegmatites. At the his 13th century travels. The fame of Ceylon’s gems Marapana mine, the mining process involves excava- continued to grow during the time of colonization by tion of square shafts down to illam layers that lie about the Portuguese, the Dutch, and finally the English. 15 m below the surface. Typically approximately 40% Today Sri Lanka produces more than 40 varieties of of the recovered corundum is heat-treatable geuda gems, with blue sapphire the most important economical- sapphire. ly. The major gem-producing areas are found in the Prior to heat treatment, the geuda is sorted into sev- southern part of the island. They extend north to Elahera, eral categories and subcategories, because not all geuda in the central part of the country. Some of the most responds similarly to treatment. The classification takes famous deposits are found near the city of Ratnapura, into account visual appearance, transparency, intensity which means “city of gems.” Virtually all of the gem of color, and color distribution. As described by material comes from alluvial gravels. Often a wide variety Rupasinghe et al. (1993), the two major divisions are: of gems are recovered from a particular location. For Group 1—Described as silky, milky, diesel, dhun, and example, the deposits around Ratnapura produce ottu. Geuda in this category requires heat treatment in a amethyst, apatite, beryl, chrysoberyl, citrine, corundum, reducing environment to develop a blue color, which garnet, iolite, kornerupine, scapolite, sillimanite, sinhalite, is attributed to Fe-Ti charge transfer. spinel, , topaz, tourmaline, and zircon. Group 2—Described as bluish red, red, and Mining in Sri Lanka is typically primitive. In fact, it kowangy pushparaga. Geuda in this category requires has remained much the same for centuries. Pit mining is heat treatment in an oxidizing environment to intensi- common, whereby the gem-bearing gravels (called fy the red and yellow hues. illam) are reached by holes dug 3 to 15 m deep The most widely used heat-treatment furnace in Sri (although depths of 40 m have been reported). The Lanka, the Lakmini, was developed locally. Success illam is washed, and the clean gravel (called dullam) is with this furnace is variable. More modern equipment examined for gem material. Gems are also recovered and technical knowledge are needed if the Sri Lankan from rivers by scuba divers, who vacuum the gem-bear- geuda heat-treatment industry is to remain competitive ing gravel into a floating sluice. Modern, mechanized with that in Thailand. mining has met with resistance, particularly from tradi- tional miners. Currently, such mining is only allowed in R EFERENCE locations that will be flooded by the creation of a new Rupasinghe M.S., Dissanayake C.B., Perera D.G.A. (1993) The Sri dam, when the gravels must be mined quickly before Lankan Geuda. Institute of Fundamental Studies, Kandy, Sri Lanka. they are submerged. Much of the exploration for new deposits is done by An Examination of the State independent miners using rudimentary methods, and of the Gem Trade in Sri Lanka they tend to concentrate on known gem-producing areas. More scientific and methodical prospecting would Aly Farook and Thahir Farook, Sapphire Gem Co., likely improve production in established mining regions, Beverly Hills, California; Dean Stevens and and might also uncover new deposits elsewhere. Andrew Lucas, GIA, Carlsbad, California Master cutters and pre-formers in Sri Lanka handle Sri Lanka (formerly known as Ceylon) is one of the expensive rough and are proficient at orienting a oldest and most important colored stone producers in stone so that it shows the finest color face-up. the world. The Mahavamsa (Sinhalese chronicles from However, Sri Lankan cutters have been criticized for the fifth century AD) mentions — among other refer- the overall quality of their cutting. Traditionally, Sri ences to the island’s gems — a king’s throne encrusted Lankan cutters emphasized weight retention at the with gems. That reference dates the throne to 543 BC. expense of appearance, which resulted in asymmetri- It is believed that Sri Lanka was the original source cal, unattractive “native” cuts. Now, some Sri Lankan of the sapphires and rubies used in jewelry by the cutters are adopting modern techniques and interna- Etruscans and by early Greeks and Romans. The tional cutting standards, as well as cutting calibrated Roman naturalist Pliny (23 –79 AD) referred to the sizes. Although their cutting quality meets the gem wealth of Sri Lanka, which had been described by demands of the international gem trade, they face Sri Lankan envoys who visited Rome in 45 AD. The fierce competition from other countries with inex- island’s gem wealth became more legendary with refer- pensive labor, such as China.

GEMS & GEMOLOGY FALL 1999 143 Over the last three decades, other areas of the trade Smithsonian Institution's National Museum of Natural have grown more competitive as well. For example, in History. Even though they are world renowned, little the 1970s dealers in Thailand began heat treating has been recorded about their history. translucent, milky white geuda sapphire from Sri Lanka The Rosser Reeves ruby is a light red oval star stone to yield transparent, fine-color blue gems. To supply from Sri Lanka that weighs 138.7 ct. The ruby was material for this new treatment, Thai buyers began donated to the Smithsonian Institution by Mr. Reeves purchasing large amounts of geuda sapphire in Sri in 1965. The jewelry firm of Robert C. Nelson, Jr. Lanka. Although the miners profited, the Sri Lankan sold the stone to Mr. Reeves on behalf of Paul Fisher, dealers suffered in the face of this new competition whose father had purchased the 140-ct ruby at an auc- from Thailand. tion in England. The stone was recut slightly to The State Gem Corporation of Sri Lanka was remove deep scratches. founded in 1971 to regulate, develop, and promote the The 329.7 ct is a deep blue round star country’s gem industry. It handles a wide range of sapphire from Myanmar. The stone was acquired from responsibilities, from licensing miners to determining Martin L. Ehrmann Co. in 1961, which acted on the value of gem exports. Among its various regula- behalf of Jack Masson of Los Angeles and Geneva, tions is a controversial ban on the exportation of Switzerland. The stone reportedly once belonged to rough. Also, all gem exports must be cleared through the Maharajah of Jodhpur, India. this agency. However, gem export figures have The is a 182 ct oval star sapphire become more reliable since the inception of the State from Sri Lanka. It was a bequest from movie star Mary Gem Corporation, and the agency is taking measures Pickford in 1981. An article in the October 15, 1938 to help modernize the cutting industry and improve issue of Vogue magazine mentioned Ms. Pickford as the education in areas such as gemology. The agency also owner of a brooch containing a 200 ct star sapphire, has relaxed some regulations, notably import duties on which we believe to have been this stone. rough gems, which has benefited local cutting indus- The Star of Artaban is a 287.32 ct light blue oval star tries and dealers. For example, as the production of sapphire of unknown geographic origin. It was donat- fine-quality Sri Lankan sapphire dropped, the relaxed ed to the Smithsonian in 1943 by W. Frank Ingram of import duties encouraged Sri Lankan dealers to buy Atlanta, Georgia, who purchased the stone from this material abroad, especially in Madagascar. William V. Schmidt Co. of New York. In 1935, Nish With the introduction of more-advanced treatments Vartanian of New York bought the stone in Bombay and synthetics, and with the increase in imports from from a Mr. Mendelsohn. An article in the August 1937 other locations, the need for trained gemologists has issue of The Mineralogist mentioned that this sapphire grown dramatically. Their services have been requested was the centerpiece of a traveling exhibit of star rubies at every level of transaction, from the mine to the deal- and sapphires that was organized by W. V. Schmidt er’s office. Qualified gemologists and well-equipped Co. laboratories with sophisticated testing equipment are The is a 423 ct blue sapphire from Sri crucial to the success of the Sri Lankan gem industry. Lanka. This cushion-cut stone is surrounded by 20 With modernized cutting, increased education, round diamonds in an antique silver-and-gold brooch. It improved gemological services, and policies that attract was donated in 1960 by Rebecca Pollard Guggenheim, foreign buyers, the gem trade of Sri Lanka can contin- but it stayed in her possession until she, as Mrs. John ue to be a major international force while retaining the Logan, formally presented it to the museum in 1971. cultural aspects, traditions, and generations of knowl- An article in the July 1958 issue of Ladies Home Journal edge held by those in the gem business. mentioned that the sapphire was a gift from her hus- band, circa 1952. The Smithsonian Institution's The Bismarck sapphire is a 98.6 ct deep blue cush- Corundum Conundrums ion-cut stone from Myanmar that is set as the pendant to a striking necklace by Cartier. It was donated in Russell C. Feather II ([email protected]), 1967 by Countess Mona von Bismarck, who had Smithsonian Institution, National Museum of acquired it some years earlier in India. Natural History, Washington, DC If you have further information on any of these There are six named corundums among the more than stones, please contact the Smithsonian at the above e- 10,000 gems in The National Gem Collection at the mail address.

144 SYMPOSIUM PROCEEDINGS ISSUE Classification of Gem Using R EFERENCE Raman Spectroscopy Smallwood A. (1997) A new era for opal nomenclature. Australian Gemmologist, Vol. 19, pp. 486-496. Emmanuel Fritsch ([email protected]) and Jany Wery, Institut des Matériaux Jean Rouxel, Nantes, France; and Mikhail Ostrooumov, Understanding Emerald Enhancements University of Michoacán, Mexico Charles Garzon, Fernando Garzon, and Arthur Groom, The classification and nomenclature of opals has always Gematrat, New York been a complex issue. Recently, a classification based With its luscious green coloring, emerald has captivat- on visual appearance was proposed for appraisal pur- ed and mystified people throughout the centuries. To poses (Smallwood, 1997). However, the mineralogical some, emerald has even taken on more mystical classification of opals is based on X-ray diffraction anal- attributes, symbolizing rebirth and fertility. ysis—a destructive technique that is of no practical use For all its mysticism, emerald has a less than glam- for gem opals. We propose a new approach to the geo- orous beginning. The geologic processes by which it logic classification (and, when possible, geographic forms are brutally wrenching, often as wounding as classification) of opal based on Raman scattering, they are wondrous. Hence, almost all emeralds have which provides a different kind of structural informa- fissures that may mar the clarity appearance of the fash- tion than X-ray diffraction. It has the advantage of ioned stone. being nondestructive, and it is fairly quick compared to The process of “enhancing” emeralds to reduce the X-ray diffraction. Also, spectra can be obtained easily, visibility of these fissures has been done for centuries. even from mounted gems. Although the filler materials and equipment have We studied over 70 opals from Mexico, Australia, changed throughout the years, the premise under Brazil, and Honduras using both X-ray diffraction which an emerald is “enhanced” has not: Today, like analysis and Fourier-transform Raman spectroscopy. centuries before, an emerald is “enhanced” to diminish The samples included play-of-color as well as common the scars of its creation and bring forth its full natural opal, in several different varieties (white, black, boul- beauty. der, fire, and crystal opal). The position and intensity Given that clarity enhancement is often the final of Raman scattering bands vary within a limited range step in preparing an emerald for market, it is important for each locality. Preliminary results have demonstrated to understand the process used, and especially the that this approach can do the following: attributes and limitations of the filling material to be 1. Distinguish between opals of sedimentary ori- employed. Since the value of an emerald is determined gin (Australia, Brazil) and volcanic origin largely by its overall appearance, it behooves us to select (Mexico, Honduras). Opals from siliceous sedi- and apply the most stable filling material available. In mentary rocks are generally more poorly crys- today’s market, a variety of resins are available that tallized (broader bands, different peak positions) approximate the R.I.’s of emerald, while offering excel- and more hydrated than those from volcanic lent stability. Tradition, beauty, and technology have environments. converged in the practice of emerald enhancement. 2. In a small number of cases, provide geographic origin information. Unlike X-ray diffraction Characterization of Inclusion patterns, the Raman spectra of various opals Suites in Sapphire Using from a given locality are fairly similar. Although Raman Spectroscopy the spectra seem to correlate best with geologic origin, some samples, especially some Australian Mary I. Garland ([email protected]), opals, show distinctive Raman spectra. G. S. Henderson, and T. L. Haslett, University of 3. Provide information about the “water” content Toronto, Ontario, Canada; and F. J. Wicks, Royal (molecular water or hydroxyl groups) in opal. Ontario Museum, Toronto, Ontario, Canada Water is an important intrinsic component of Establishing the original source of gem corundum from opal. Its concentration and mode of incorpora- some alluvial deposits is difficult, and for many tion can vary widely from one deposit (and deposits, this must be done by inference. In the case of sometimes from one sample) to the next. the Montana alluvial sapphires, no source rock has

GEMS & GEMOLOGY FALL 1999 145 been located yet, despite over 100 years of mining and Apart from rutile, the most common inclusion in prospecting in the region. the Montana alluvial sapphires was labradorite feldspar, Gem corundum forms via metamorphic reactions which was usually found associated with muscovite. in crustal rocks, or as magmatic or metamorphic reac- This particular inclusion combination is distinctive for tions in the earth’s mantle. Identification of inclusion sapphires from both the Rock Creek and Dry suites within placer minerals such as corundum estab- Cottonwood Creek deposits. Zoisite, epidote, rhodolite lishes a mineral assemblage that not only echoes the garnet, analcime, anhydrite, and apatite were also noted host rock mineralogy, but can also establish limits on as inclusions in the Dry Cottonwood sapphires. the pressure and temperature of the gem’s formation. Clinozoisite, diaspore, zoisite, and sapphirine were Energy-dispersive methods of identification (electron characteristic of the non-heat-treated Rock Creek sap- and proton microprobe) require exposing the inclu- phires. An unusual oval feature, with a distinctive but sion at a polished surface, a time-consuming and yet-unidentified spectrum, was noted in several heat- destructive procedure. Micro-Raman spectroscopy is a treated sapphires from the Rock Creek deposit. These fast, nondestructive technique that can identify miner- features averaged 10 × 15 microns in size, and locally al inclusions within the host crystal. This technique was appear to have recrystallized into rutile. They are used to characterize the inclusions in unheated and thought to be an unstable TiO2 polymorph that formed heat-treated sapphires from the Rock Creek area (50 during the heating process. samples), Dry Cottonwood Creek (13 samples), and Zones of micron-sized rutile and rutile-ilmenite Eldorado Bar (4 samples) in southwestern Montana. grains, and the presence of labradorite, muscovite, The investigation also included unheated sapphires of zoisite, and sapphirine (Rock Creek) were distinctive known geologic origin from the following deposits and characteristic for the Montana alluvial sapphires. (number of samples in brackets): (A) Those of mag- This latter inclusion suite has more affinity with meta- matic affiliation (e.g., alkali basalt)—Australia [28]; morphic than magmatic rocks. Coupled with the dis- Yogo, Montana [8]; Cambodia [4]; Shandong, China tinct lack of any alkali basaltic material in either the [3]; Thailand [3]; Mull, Scotland [1]; eclogitic corun- deposit gravels or surrounding rocks leads to the con- dum from South Africa [2]; and (B) those of meta- clusion that the Montana alluvial sapphires have a morphic affiliation—Kashmir [1]; Myanmar [2]; metamorphic origin. The difference in inclusion suites Tanzania [2]; Sri Lanka [3]; Madagascar [2]; Brazil [1]; in the Rock Creek and Dry Cottonwood sapphires is and West Pailin, Cambodia [4]. probably due to local differences in the metamorphic Rutile was ubiquitous in corundum from all the environment. deposits studied, and was the most prolific mineral inclusion. In the magmatic sapphires, rutile occurred as Fissure Fillings in Emeralds: tiny grains forming dense clouds, as blocky crystals that A Comparison of Different contained zones of ilmenite, and as needles. Needle- Identification Methods and rod-shaped crystals were the preferred habits for rutile inclusions in sapphires of metamorphic origin. Henry A. Hänni ([email protected]), Lore Kiefert, Rutile in the Montana alluvial sapphires occurred as and Jean-Pierre Chalain, SSEF Swiss Gemmological dense clouds and zones of tiny grains, in crystals zoned Institute, Basel, Switzerland with ilmenite, and as grains associated with unidenti- For many centuries, fissures in emeralds have been fied oval features (described below). filled with oils and other natural substances to enhance Magmatic sapphires were characterized by needle- the clarity of the gem. Over the past 15 years or so, shaped inclusions of rutile, ilmenite, goethite, and various artificial resins (mainly epoxy resins) have also , and by the presence of hercynite as the dom- been used as filling substances. The different substances inant spinel phase. Ilmenite was less common in the vary in stability and thus degree of permanence. Oils metamorphic sapphires; it formed zoned crystals with are the most volatile of the fillers used, but they can be rutile, or micron-sized grains. Goethite and hematite removed easily from the stone and replaced. Artificial formed only secondary inclusions in the metamorphic resins are much more durable than oils, but they sapphires, as part of the iron-stained material in frac- decompose over time and are difficult to remove. tures. Hercynite was rare in the metamorphic sap- Because of these differences, the trade often requests an phires; where present, the crystals formed irregular identification of the substance used, which must be plates associated with magnetite. In contrast, hercynite done nondestructively. in the magmatic sapphires formed rounded plates and The first step in filler identification is visual obser- displayed no association with magnetite. vation with the microscope and with long-wave UV

146 SYMPOSIUM PROCEEDINGS ISSUE radiation, to estimate the presence or absence of a The garnet deposits are hosted by strongly meta- filler, as well as the location of the filled fissures in the morphosed Precambrian rocks of the Eastern Ghats stone. These observations also provide an indication of Belt. Mining began in 1975, and is generally done by the quantity and extent of the filler. Next, the sub- hand tools. The deepest mines are not more than about stance is analyzed by infrared and/or Raman spec- 30 feet (9 m). The mineralized zones typically dip 60° troscopy. At SSEF, these two complementary tech- east or north. niques are used together, with infrared spectroscopy as All of the garnets analyzed belong to the pyrope- a macro method and Raman spectroscopy as a micro almandine series. The garnets vary in composition, method. Once a spectrum is obtained with either depending on their locality. Garnets from Nakta instrument, it is compared to an extensive databank of Munda showed the desired purplish hue, which makes reference spectra for the pure filler substances. this the best-known locality for rhodolite in Orissa. Accumulations of more than one filling substance These garnets revealed a lower iron content (they were are common in emeralds, as a result of multiple treat- more than 80 mol.% pyrope) than the other localities, ments. For example, a stone may be filled both in its and this could be seen in their visible absorption spec- rough state and again after it has been cut, and some tra. All other samples had pyrope contents of 56–65 emeralds are re-treated one or more times either to mol.%. Some garnets from Matri Dari and Dumer replace a filler that has been inadvertently removed or Guda also showed a purplish hue, but these were less damaged, or to try a different filler that may better purple than in the Nakta Munda material. All the other improve the appearance of the stone. The characteristic samples appeared more orangy red. peak positions of these substances will appear as a com- The observed colors corresponded very well to the bined spectrum, but the different components are usu- L∗a∗b∗ (L∗ = “darkness”; a∗ = red-green axis [a posi- ally identifiable. In more than 80% of the stones sub- tive value is toward red]; b∗ = yellow-blue axis [a pos- mitted to SSEF, the substance category (e.g., oil or itive value is toward yellow]; see, e.g., Billmeyer and artificial resin) can be identified when infrared and Saltzman, 1981) values calculated from the absorption Raman spectroscopy are combined. spectra (see table). The data in the table also show a positive correlation between specific gravity and refrac- Pyrope-Almandine Garnets from tive index, as previously demonstrated for rhodolite by Various Mining Areas in Orissa, India Lind et al. (1998). According to the classification of Lind et al. (1998), the samples from Nakta Munda, Manuj Goyal ([email protected]), Pink City Gems, Matri Dari, and Dumer Guda were “Type 1,” and Jaipur, India; and Michael Schlamadinger, samples from the other localities were “Type 2.” D. Swarovski & Co., Wattens, Austria All of the samples contained the rutile and apatite The state of Orissa, in eastern India, produces a variety inclusions that are typical of pyrope-almandine, and of gems, including garnets. Mining for pyrope-alman- zircon was identified in some. dine garnet occurs within about 250 km of Kata R EFERENCES Banghi, in all directions; this town is also the center for the sorting and sale of the garnets. The 12 mining areas Billmeyer F.W. Jr., Saltzman M. (1981) Principles of Color Technology, 2nd ed. John Wiley & Sons, New York. are: (1) Nakta Munda, (2) Lora Munda, (3) Khairpada, Lind T., Henn U., Milisenda C.C. (1998) Vergleichende (4) Malkhangiri, (5) Lounghi, (6) Matri Dari, (7) Untersuchungen an Rhodolithen verschiedener Provenienz Chalna, (8) Maurya, (9) Mangher, (10) Budapada, (11) (Comparative investigation of rhodolite garnets from different Ghantiguda, and (12) Dumer Guda. For this study, we provinces). Zeitschrift der Deutschen Gemmologischen Gesellschaft, analyzed garnets from localities 1, 4, 5, 6, 7, 8, and 12. Vol. 47, pp. 53 –59.

Kanchanaburi Sapphires and Their Properties of pyrope-almandine garnets from Orissa. Reaction to Heat Treatment Locality S.G. R.I. L* a* b* Rak Hansawek ([email protected]), The Gem and Lounghi 3.82 1.758 43.2 40.3 7.8 Jewelry Institute of Thailand, Department of Dumer Guda 3.84 1.759 52.4 35.5 3.0 Mineral Resources, Bangkok Nakta Munda 3.84 1.760 67.1 18.4 −4.6 Chalna 3.83 1.761 40.2 33.5 6.2 Kanchanaburi sapphires are found in secondary depos- Maurya 3.87 1.763 50.9 41.1 9.8 its derived from the weathering of alkali basalt. On the Matri Dari 3.88 1.765 60.5 31.0 −3.6 basis of a geomorphologic study of the area, the sap- Malkhangiri 3.94 1.780 24.0 40.2 11.1 phire deposits can be classified into three types: residual

GEMS & GEMOLOGY FALL 1999 147 basaltic , colluvium and talus, and placer. The plac- the other minerals found with the sapphire in varying ers form about 95% of the deposits. The sapphire-bear- proportions are black spinel, black pyroxene, zircon, ing secondary deposits can be traced from Ban Chong magnetite, and sanidine. Dan in the north to Khao Chon Kai in the south, cov- The few kilograms of Kanchanaburi sapphire ering an area of about 110 km2. obtained for this study were separated into four groups Placer mining at Bo Phloi is generally confined to according to their natural range of colors: blue, gray- the approximately 3-m-thick sapphire-bearing horizon, brown, yellow, and violet. Trace-element data (see which is located 13–15 m below the surface. The table) show that the coloration is related to Fe, Ti, Cr, rough sapphires generally range from 0.5 to 4 ct, and V, which are present in varying amounts. The although a few exceptionally large stones, up to 400- presence of Fe is significant, because not only is it 700 ct, have been found. The principal gem-mining responsible for the blue, gray-brown, and yellow col- activities are concentrated in two areas: Ban Chong ors, but it also influences tone: The stones become Dan and Ban Bung Hua Waen. Most of the larger sap- darker with increasing Fe content. Heat treatment of phires are recovered from Ban Chong Dan, while the gray-brown sapphires, and of sapphires that contain smaller sizes—frequently showing a finer blue color— silky inclusions and milky white or brown color zon- are typically found at Ban Bung Hua Waen. Among ing, produces a blue color. The absorption spectra of the heat-treated blue sapphires indicate that their color is caused by Fe2+–Ti4+ intervalence charge transfer. Concentration (in wt.%) of some trace elements in sapphires from the Bo Phloi area, Kanchanaburi. Acknowledgments The author is grateful to the following for their help and collabora- Locality and color Fe Ti Cr V tion: Bozena Skabar of the Joze Stefan Institute, Ljubljana, Slovenia, for EDXRF analyses of Fe, Ti, and V; Garry Dutoit Ban Bung Hua Waena of the Asian Institute of Gemological Sciences, Bangkok, for Cr Blue series analyses using an EDAX energy-dispersive system; Krittiya Dark blue 0.397 0.021 <0.001 <0.001 Blue 0.334 0.011 NAb <0.001 Pattamalai and Prawat Tangphong, Gemstone Section, Economic Light blue 0.283 0.008 <0.001 <0.001 Geology Division, Department of Mineral Resources, Bangkok, Very light gray-blue 0.278 0.008 NA <0.001 for heating experiments and geologic field data. Very light blue-white 0.285 0.004 <0.001 <0.001 R EFERENCE Gray-brown series Dark gray-brown 0.322 0.012 <0.001 <0.001 Hansawek R., Pattamalai K. (1997) Kanchanaburi sapphire deposits. Mineral Resources Gazette, Department of Mineral Gray-brown 0.315 0.007 <0.001 <0.001 Resources, Bangkok, Vol. 42, No. 1, pp. 17-38 [in Thai]. Light gray-brown 0.289 0.006 <0.001 <0.001 Violet series Light gray-violet 0.229 0.006 0.024 0.003 Identifying Sources of Burmese Rubies Ban Chong Dan Han Htun, Myanma Gems Laboratory, Yangon, Blue series Myanmar; and George E. Harlow ([email protected]), Dark blue 0.441 0.017 NA <0.001 American Museum of Natural History, New York Blue 0.357 0.010 NA <0.001 Light blue 0.333 0.009 NA 0.001 There are two major sources of rubies in Myanmar Very light gray-blue 0.286 0.011 NA <0.001 (formerly Burma)—Mogok (Mandalay Division) and Extremely light gray-blue 0.307 0.013 NA <0.001 Mongshu (southern Shan State, also spelled Mong Gray-brown series Hsu)—and several minor sources: Nawarat/Pyinlon Dark gray-brown 0.349 0.014 NA <0.001 (near Namkhan, Shan State); Nanyaseik and Tanai Gray-brown 0.312 0.031 NA 0.001 (Kachin State); Katpara (Kachin State); and the Sagyin Yellow series and Yatkanzin stone tracts (Madaya township) near Extremely light yellow 0.301 0.010 <0.001 <0.001 Mandalay. At Mogok and the smaller deposits, the Violet series rubies are hosted in white marble. The rubies within Light violet 0.277 0.038 NA 0.003 each tract reveal considerable diversity, but there are also strong similarities from one of these marble-host- aAlso contains a yellow series (various shades of yellow, mostly light in color) that was not analyzed. ed tracts to the next. Mongshu, where the rubies are bNA= not analyzed. associated with metasediments as well as marbles, yields stones that are distinctly different from those

148 SYMPOSIUM PROCEEDINGS ISSUE Characteristics of rubies from five localities in Myanmar.

Variable Mogok Nawarat (Pyinlon) Nanyaseik (Kachin) Sagyin Mongshu (heat-treated)

No. gems Several hundred >60 ~30 >100 Several hundred observed Color Pinkish to intense Medium red with Pinkish, rarely in- Pinkish to medium Medium to intense deep red purplish overtone tense red, all with red deep red (blue may re- purplish overtone main if heat treatment is inadequate) Fluorescence Strong to very strong Strong Moderate to inert Strong Inert to long-wave UV Zoning Bands and swirls Swirls Angular growth Present Pronounced bands zones; swirls Inclusions Calcite Common, with twin- Subhedral to Subhedral to Subhedral to Subhedral to rounded, ning or cleavage rounded rounded rounded but heat destroys them Dolomite Often yellow Present Present Present n.r.a Apatite Prismatic Present Present n.r. n.r. Titanite Present n.r. n.r. n.r. n.r. Spinel Present Probablyb n.r. n.r. n.r. Rutile crystals Well-formed Present Very small n.r. n.r. Rutile silk Characteristic; Thin, patchy, and Thin and patchy Rare fine particles, Comet-like wisps, fine patchy to uniform in bands clouds dust-like particles and stringers Mica Muscovite, biotite Biotite Present Present n.r. Feldspar Present Present n.r. n.r. n.r. Pyrite/pyrrhotite Present Probablyb n.r. n.r. Present Others Many n.r. n.r. n.r. White “snowflakes” and comet-like string- ers—unknown minerals Healed fractures Occasional “finger- n.r. Present n.r. “Fingerprints” are prints” characteristic an.r.—not reported. b“Probably” is stated because the inclusion was identified by its appearance only.

found elsewhere in Myanmar (in both their natural teria for distinguishing among these sources and and heat-treated states). Thus, rubies from Mongshu Mogok. are easily separated from those found at Mogok and For more on these rubies, visit the Web site http:// the smaller deposits. These differences can be dis- research.amnh.org/earthplan/research/geh_rubies.html. cerned using an optical microscope. Rubies from Mogok are generally distinguished by their intense saturated pink-to-red color, noticeable Characterization of Some daylight fluorescence, and light to moderate silk. Emerald Filling Substances Fundamentally, treated Mongshu rubies are identifiable Mary L. Johnson and Sam Muhlmeister, GIA Gem by their “fingerprint” inclusions and the whitish spots and wisps produced by heat treatment to remove the Trade Laboratory, Carlsbad, California; and Shane Elen, blue coloring in the core, which otherwise readily dis- GIA Research, Carlsbad, California tinguishes unheated Mongshu crystals. The table lists A wide variety of substances are used to fill the fissures characteristics for rubies from five Myanmar localities. in emeralds and thus enhance their appearance. Mostly subtle differences exist among the other sources, Although some filling substances have been used for although color, color saturation, and the presence or several decades, today a variety of modern chemical absence of silk appear to provide the best optical indica- products are also employed. Given this variety, the tors of origin. Further research is required to assess cri- goals of this study were: (1) to characterize some of the

GEMS & GEMOLOGY FALL 1999 149 properties of these substances, and (2) to determine to paraffin wax); epoxy prepolymers and polymers (liquids what extent the identity of the particular filling sub- or plastic solids with a specific chemistry); and other stance could be established. prepolymers and polymers (liquids or plastic solids with other chemistries). Substances in the first four cate- Materials and Methods. We examined 39 filling gories may be natural or synthetic; those in the last two substances that were known or rumored to be used in are always synthetic, and can be designated artificial the trade, or were easily available for this purpose (see resins. table). We grouped these filling substances into several We observed the color and refractive index of each substance categories: oils (greasy liquids, such as rapeseed liquid filling substance (in its loose form, not as a filling oil); essential oils (liquids or solids extracted from in an emerald) using standard gemological techniques. plants, such as cedarwood oil) and resins (liquids or Specific gravity was compared to that of water solids exuded from plants, e.g., saps such as Canada (sink/float test), and viscosity was assessed visually. For balsam; as cedarwood oil may also be considered a infrared analysis, we examined the liquid filling sub- resin, the essential oil and ‘natural’ resin categories are stances as droplets mounted between two glass micro- sometimes combined); waxes (greasy solids, such as scope slides (to simulate the liquid within a fissure). For

Properties of substances used to fill fissures in emeralds.

Properties Oils Essential oils Resinsa Waxes Epoxy prepolymers Other prepolymers and polymers and polymers

Simple Greasy liquids Liquids or solids Liquids or solids Greasy Liquids or plastic solids Liquids or plastic solids with definition extracted from exuded from solids with a specific chemistry other chemistries, especially plants plants; saps UV-setting adhesives Examples Mineral oil, paraffin Cedarwood oils, Canada balsam Paraffin Araldite 502, 506, 6005, and 6010; "Liquid Resin," Epo-Tek oil, Isocut fluid, clove oils, wax Epon 828; Epo-Tek 301, 302-3M, UVO 114 (uncured and sesame oil, azeite cinnamon oil, and 314; HXTAL resin; cured and cured), Norland Optical de dende (palm cassia oil uncured Opticon 224; uncured green Adhesives types 63 (uncured) oil), castor oil, Opticon 224; Permasafe; Super Tres and 65 (uncured and cured) green Joban oil Used in Used historically Popular now Used historically Used Popular now Becoming popular the trade? historically Color Colorless, light Very light yellow Yellow White Colorless, very light yellow to light Colorless or light yellow yellow, yellow, or to yellow, very yellow, green green light green Refractive 1.449–1.479 1.509–1.589 1.521 About 1.52 1.500–1.577 1.481–1.553 index Fluorescence Inert, moderate Inert, very weak Strong yellowish Inert Inert, weak to moderate greenish Inert, weak greenish yellow, to long-wave greenish yellow, green to very weak white white, weak greenish yellow to moderate green or blue, UV moderate yellowish or weak yellowish yellowish green, strong bluish white strong blue green green, moderate to light blue white, strong yellowish white Fluorescence Inert, very weak Inert to weak Very weak Inert Inert, very weak yellowish green, Inert, weak green, moderate to short- greenish yellow, yellowish green yellowish green weak greenish yellow, strong green or blue wave UV very weak to weak yellow; weak blue to moderate yellowish green light or grayish blue Relative Floats in water Some sink and Floats in water Floats in Sinks in water; two solid samples Sinks in water specific some float in water have S.G.'s of 1.11 gravity water Viscosity Liquid; flows easily Liquids flow easily Liquid, flows Solid Liquids flow easily or sluggishly; Liquids flow easily or or sluggishly; sluggishly solids sluggishly; solids semi-solids Raman B C, D, E C B A, B, C A, C spectral group Infrared B C, D C B A, B, C A, C spectral group

aOther than cedarwood oils.

150 SYMPOSIUM PROCEEDINGS ISSUE laser Raman microspectrometry, we analyzed the sam- bands (e.g., in the blue-to-violet range). ples as drops on a clean piece of aluminum foil. Analysis of the inclusions by Raman microspec- trometry revealed a common assemblage of solid and Results. Visual and gemological features were not suffi- multiphase inclusions, which indicates that these cient by themselves to distinguish the filling substances extremely rare red gemstones share a similar host rock. we examined, although some substance categories Apatite and zircon were frequently observed as solid revealed distinctive properties (e.g., low refractive indices inclusions, whereas healed fractures consisted of nega- for oils). On the basis of their infrared and Raman spec- tive crystals that contained magnesite crystals as a solid tra, we classified the substances into five spectral groups (A, component in addition to a fluid (liquid and/or B, C, D, and E). These are different from the substance gaseous) phase. categories defined above, Within each group, it is diffi- cult to distinguish specific fillers, and some groups con- Methods for the distinction of taaffeite and mus- gravite (BeMg A O ) were briefly discussed by Kie- tain both natural substances and artificial resins. For 2 l6 12 example, spectral Group C, which contains cedarwood fert and Schmetzer (1998). oil, also includes some epoxies and other artificial resins. R EFERENCE When we analyzed some mixtures of filling substances, Kiefert L., Schmetzer K. (1998) Distinction of taaffeite and we could not always detect the presence of the minor musgravite. Journal of Gemmology, Vol. 26, No. 3, pp. component by spectroscopic means. 165–167. For more on this subject, the reader may wish to consult “On the identification of various emerald fill- The Techereu Gemological Field ing substances,” by M. L. Johnson et al., Summer 1999 Ioan Mârza ([email protected]), Babes-Bolyai Gems & Gemology, pp. 82– 107. University, Cluj-Napoca, Romania The Techereu gemstone area, in the Apuseni Moun- Red Taaffeite tains, Romania, is famous for its deposits of chal- Lore Kiefert ([email protected]), SSEF Swiss cedony, multicolored jasper, and especially agate. Gemmological Institute, Basel, Switzerland; These gem minerals formed in a variety of geologic Karl Schmetzer, Petershausen, Germany; environments. Genetically and spatially associated with and H.-J. Bernhardt, Ruhr University, Early Tertiary (Paleogene) rhyolites are veins of chal- Bochum, Germany cedony, as well as epithermal . Chalcedony, but only rarely agate, is associated with Mesozoic ophiolitic Taaffeite is an extremely rare gemstone, with the for- complexes. Within Cretaceous conglomerates, mula BeMg3Al8O16. A mineral with this ideal compo- (yellowish, reddish, and multicolored) and agate con- sition would be expected to be colorless. Gemological, cretions can be found in the Almasu Mare cobbles, chemical, and spectroscopic properties of eight particularly in those areas that have layers of volcanic chromium- and iron-bearing taaffeites (purple to pur- cinders. Secondary deposits of Quaternary age contain plish red) and two iron-bearing, chromium-free taaf- chalcedony and agate that were derived from weather- feites (grayish violet) from Sri Lanka and Myanmar ing and erosion of the primary gemstone occurrences. were determined. Chemical and spectroscopic data reveal a correla- Demantoid Garnet from the Ural tion between color and trace-element contents. As Mountains, Russia determined by electron microprobe analyses, the taaf- Gabr`el Mattice ([email protected]), Nicolai Kuznetsov, feites contain up to 0.33 wt.% Cr2O3, up to 2.59 wt.% FeO, and up to 2.24 wt.% ZnO. The purple to pur- and Edward Boehm, Pala International, Fallbrook, plish red color is a complex function of the relative California amounts of iron and chromium present. Optical prop- Discovered in the mid- to late-1800s, during the reign erties and specific gravities of the 10 taaffeite samples of Alexander II, demantoid (meaning diamond-like) is also correlate well with their zinc, iron, and chromium derived from the Dutch word demant, meaning dia- contents. mond. It is mined in the Central Ural Mountains of We compared the spectroscopic properties of these Russia, where it is found alluvially in gold washings of taaffeite samples to those of chromium- and/or iron- the Sissersk District, Nizhni-Tagil; and from the bearing ; it is evident that the UV-Vis spectra of Bobrovka River (in early times, it was called Bobrovka the two gem minerals are closely related. In taaffeite, garnet as well). however, we observed some additional absorption Demantoid (Ca3Fe2[SiO4]3) is a variety of andradite

GEMS & GEMOLOGY FALL 1999 151 that is colored green by chromium. The stones range chemical composition, which is reflected in a much from pale green to yellowish green (due to trace amounts greater variation in their infrared spectra, as compared of iron) to a fine “emerald” green. Its refractive index to those of natural . They commonly show a (1.89) and dispersion (0.057) are both the highest of all broad plateau from about 3600 cm−1 to the absorption natural garnets. In spot illumination, a faceted stone will edge at approximately 2100 cm−1, with superimposed typically show a fine play of prismatic colors. When pre- broad peaks at 2830 cm−1 and about 3520 cm−1. The sent, “horsetail” inclusions are usually preserved during intensity of the superimposed peaks is variable. A num- cutting; their presence adds value to the stone. ber of specialty glasses show unusual complex spectra Currently, most of the Russian demantoid comes that are indicative of their manufactured origin. All of from the Karkodino mine, about 20 km from the still- the brightly colored “obsidians” in this study showed active Bobrovka area. Due to increased mining costs, spectra that were consistent with manufactured glass. fewer miners are working the deposits and production There are, however, some slag glasses and fused silica has decreased. Melee-sized material is still readily avail- glasses that have spectra that are too similar to those of able, but larger sizes are uncommon; this year only natural glass for a conclusive identification with FTIR four stones were recovered that cut gems weighing spectroscopy alone. more than 4 ct (W. Larson, pers. comm., 1999). Rudraksha—A Spiritual Organic Gem Infrared Spectroscopy as a Jayshree Panjikar ([email protected]) and K. T. Discriminant between Natural Ramchandran, Gemmological Institute of India, Mumbai and Manufactured Glasses In India, the rudraksha (ruda = Lord Shiva, aksha = eye) Philip A. Owens ([email protected]), GIA Gem Trade has been used as a spiritual ornamental material from Laboratory, Carlsbad, California time immemorial. Rudraksha, the seedpods of Glass, the great gem imitator, is still popular in today’s Elaeocarpus ganitrus, are covered with protrusions and fashion-conscious world. Natural glasses include grooves, by which they are classified into 14 different obsidians, (e.g., /moldavite, Libyan types or Mookhis (i.e., mono-grooved to 14-grooved Desert glass), and other naturally fused silica glass (e.g., varieties). Various other types—such as twins, triplets, ). Manufactured glasses include a wide range and those that occur in a comma shape—also exist, as of materials with various colors, textures, and compo- well as different simulants and imitations. This study sitions. As a result, the gemological properties of man- represents the first time the gemological properties and ufactured glass may overlap those of natural glass. biological effects of this organic gem material have Some glasses are of dubious origin, such as “Mount St. been investigated. Helens glass” and various transparent blue or green Most rudraksha show R.I.=1.52, S.G.=1.05-1.6, “obsidians.” Standard gemological testing is usually and a hardness of approximately 3.5. Chemical analyses sufficient to separate most natural from manufactured show 49.89 wt.% carbon, 1.04 wt.% nitrogen, 16.85 glasses, but occasionally, advanced techniques (e.g., wt.% hydrogen, 31.27 wt.% oxygen, and 0.58 wt.% Fourier-transform infrared [FTIR] spectroscopy) are trace elements (total = 99.63). necessary for identification. The biological effects of rudraksha as individual Eighty-five samples of both types of glasses, which beads as well as in a rosary are being studied. Prelim- had been identified and characterized by standard inary investigations indicate that rudraksha has an influ- gemological methods, were also studied by FTIR ence on the autonomic nervous system involving the spectroscopy. Natural glasses suitable for use as gem- sympathetic and parasympathetic nerves. stones are high in silica and relatively low in alkalis. Spectra obtained from the mid-infrared range (2000 to California Benitoite: A Proven Mineable 6000 cm−1) showed that major differences in the Reserve and New Gemological Data chemistry of natural and manufactured glasses are reflected in the infrared spectra. The absorption spec- James E. Shigley ([email protected]), GIA, Carlsbad, tra of most obsidians show a saturated “hump” that California; William R. Rohtert, AZCO Mining Inc., rises sharply at about 3700 cm−1 and tails off to lower Vancouver, Canada; and Brendan M. Laurs, GIA, wave numbers (about 3000 cm−1, but this is quite Carlsbad variable). Moldavite and Libyan Desert glass show an Commercial quantities of gem-quality benitoite are asymmetrical absorption peak at 3700 cm−1. known from a single location in the world, the Manufactured glasses show a wide variation in Benitoite Gem mine in San Benito County, California.

152 SYMPOSIUM PROCEEDINGS ISSUE observations of 123 faceted benitoites were made at the GIA Gem Trade Laboratory in New York. The hue spans a narrow range in Munsell color space, from 5.0 PB (purple-blue) to 8.0 PB (see figure). About 75% of the population occupies half of this domain, in the region from 5.0 to 6.5 PB. The more violetish stones tend to be deeper in tone, and are less common than the more bluish stones.

R EFERENCE Laurs B.M., Rohtert W.R., Gray M. (1997) Benitoite from the New Idria district, San Benito County, California. Gems & Gemology, Vol. 33, No. 3, pp. 166–187.

The First California Gem Tourmaline Locality Matthew C. Taylor, M. C. Taylor Analytical Services, The color space outlined on this hue-saturation diagram repre- Vista, California sents color observations of 123 faceted benitoites, as judged with standardized lighting and viewing conditions. “Page” The first gem tourmaline recorded in California was refers to the “purple-blue” (PB) page number in the Munsell reportedly encountered as loose crystals on the south- Book of Color. eastern part of Thomas Mountain, Riverside County, in June 1872 (Kunz, 1905). Two decades later, claims were staked at the granitic pegmatite source of these crystals—under the names California Gem mine and Benitoite, a barium-titanium silicate (BaTiSi3O9), was San Jacinto Gem mine in December 1892, and the discovered there in 1907, and was named the Colombian Gem Mine in July 1893. The deposit sub- California state gemstone in 1985. It is typically color- sequently became known as the Columbia [sic] Gem less to blue, and is noteworthy for its high refractive mine, and in 1957 was renamed the Belo Horizonte indices, high birefringence, and strong dispersion. A No. 1 mine. According to Hamilton (1919), more than total of about 5,000 carats of faceted benitoite have a “bushel” (>35 liters) of red and green tourmaline been produced sporadically over the life of the deposit. crystals were mined during the first season’s operation. This very limited production has historically relegated Many exquisite tourmaline specimens were produced benitoite to a collector’s gem, one of the rarest in the during the first years of operation, the larger crystals world. (See Laurs et al., 1997, for details on the discov- nearly always showing “watermelon” coloration, with ery and gemology of benitoite, and the history of the red interiors and green rims. Hamilton (1919) reported Benitoite Gem mine.) that $10,000 worth of gem tourmaline was produced The Benitoite Gem mine is currently under option from the California Gem mine in 1894, from shallow to AZCO Mining Inc., which has spent nearly US$1 trenches cut into the steeply dipping host pegmatite. million over the past two years exploring the mineral Gem- and specimen-grade elbaite occurs in - deposit and defining a mineable reserve. This was done filled cavities (“pockets”) within the host pegmatite. by means of an extensive bulk sampling and core This tourmaline forms euhedral, multicolored (rarely drilling program. The proven and probable reserve colorless) crystals up to 10 cm in diameter and 20 cm from the alluvial and colluvial sources is estimated at long. Color zoning when viewed parallel to the c-axis >25,000 carats of polished goods (mostly melee-sized characteristically shows a concentric pattern composed material). This is sufficient for commercial production, of a large core that is orange, red and/or violet, a very and for maintaining stability of price and supply for thin white to colorless intermediate zone, and a narrow many years to come. green rim. Sector zoning is commonly observed, Benitoite is the subject of a collaborative characteri- exhibited as red “Mercedes” triangles similar to liddi- zation study between AZCO and GIA. This study is coatite from Madagascar. Color zoning when viewed investigating the cause of color (which is still perpendicular to the c-axis generally progresses from unknown), and will address the gemstone’s durability black at the base, through violet, red, and/or orange, in the manufacturing environment. Standardized color with or without green and/or blue terminations. The

GEMS & GEMOLOGY FALL 1999 153 crystals contain planes of multiphase (solid + liquid + large, dark blue, well-formed crystals that contain few vapor) inclusions that are often truncated at various inclusions. The largest corundum crystal discovered so stages by continued growth. These inclusions signify far weighed 2,500 grams. For commercial purposes, violent pocket-rupturing events during and after tour- the sapphires are divided into five groups. Four of the maline crystallization. Primary multiphase inclusions groups are based on color: blue, yellow, green, and are commonly found within the green rims as narrow brownish red and pink. The fifth group is composed of tubes oriented parallel to the c-axis. Rare inclusions of specimen-grade material. microlite were also identified, by electron microprobe. Because the color of most Shandong sapphires is dark Chemical trends measured by numerous electron blue, heat treatment is commonly performed to improve microprobe analyses of the pocket tourmaline are cor- the color. When heated to about 1,900°C in an oxidiz- relative with the color zonation, and range from initial ing atmosphere, a more desirable blue color is obtained. precipitation of iron-rich compositions (blue-to-violet Further details on the history of sapphire exploration in schorl and foitite), to iron depletion with manganese this area, the geology the deposits, and the chemistry of enrichment (pink and red-to-orange elbaite), followed the sapphires can be found in Guo et al. (1992). by slight enrichment of iron and calcium with man- R EFERENCE ganese depletion (green-to-blue elbaite). The man- ganese content reaches a maximum of 8.45 wt.% MnO Guo J., Wang F., Yakoumelos G. (1992) Sapphires from Changle in Shandong Province, China. Gems & Gemology, Vol. 28, in the red zones. One pocket produced small colorless No. 4, pp. 255–260. crystals of highly aluminous tourmaline that span the compositional boundary between two extremely rare Surface-Enhanced Topaz tourmaline species, olenite and rossmanite. A recently discovered productive area within an Thom Underwood ([email protected]), Accredited adjacent pegmatite from an adjoining claim exhibits a Gemologists Association, San Diego, California, and remarkable similarity to the original pegmatite. Richard W. Hughes ([email protected]), Pala Moreover, a survey using ground penetrating radar International, Fallbrook, California (GPR) confirmed that both producing pegmatites con- At the 1998 Tucson Gem Fair, a new type of en- tinue for tens of meters along strike. Past production hanced topaz made its appearance (Johnson and from the very limited exploitation of the pegmatites Koivula, 1998; Hodgkinson, 1998). This treatment has suggests that significant quantities of gem tourmaline been described by one producer of blue-to-greenish could be produced from this locality in the future. blue treated topaz—Richard Pollak of United Radiant Applications in Del Mar, California—as a surface-dif- R EFERENCES fusion process that produces a thin layer of color at and Hamilton F. (1919) Report XV of the State Mineralogist. Mines just below the surface of an otherwise colorless topaz. and Mineral Resources of Portions of California, California State Mining Bureau, Sacramento, California, pp. 574–577. Charles Lawrence of CL Laboratories in Encinitas, Kunz G.F. (1905) Gems, Jewelers’ Materials, and Ornamental Stones California, is using a similar process to produce a wider of California. Bulletin No. 37 of the California State Mining range of colors, including an “emerald” green. Bureau, San Francisco, California, 171 pp. According to both manufacturers, the color layer results from heating topaz in a cobalt-rich powder. Sapphires from Shandong, China Our microscopic examination of several samples confirmed that the color of this material is confined to Liangguang Tian ([email protected]), Wenghui a layer at and just beneath the surface. This layer is so Huang, Youfa Cheng, Huafeng Liu, Shuxiang Chen, thin that the question has arisen as to whether it repre- and Haibin Liu, Gemstones Supervision and Test sents a surface coating or a surface-diffusion process. Station of Shandong Province, Shandong, China However, according to Trogler (1998), the surface Gem-quality sapphires were discovered in secondary composition (as determined by energy dispersive analy- deposits in Shandong Province in 1986 and, subsequent- sis) shows a high concentration of cobalt, which sug- ly, in 1988 as primary deposits in nearby basalts. The gests a heavily doped surface layer. Trogler (1998) fur- secondary deposits, situated in the vicinity of Wutu, ther states: “The ratios of the wt.% values of the Qiaoguan, and Cuijia, are of two types: eluvial (includ- nonoxygen element is [sic] probably most meaningful. ing concentrations in talus) and alluvial. The in situ Pure topaz has an Al:Si ratio of 1.92, whereas the deposits are mainly located in the vicinity of Fangshan. green stones (treated topaz) have a ratio of 1.41. This Total reserves are estimated at 100 million carats. suggests extensive substitution of Al by cobalt in the The Shandong sapphires are typically found as surface layer. The weight percentage of the silicon sug-

154 SYMPOSIUM PROCEEDINGS ISSUE gests it is perturbed the least, and so the ratios relative other anomalous R.I. readings. Indeed, our testing to silicon are most useful.” showed that a single stone can produce a variety of R.I. The properties of the 14 samples of blue-to-green readings, depending on which facet is tested. surface-treated topaz that we examined are summarized With gemstone enhancements so common in in the table. The most important identifying feature is today’s colored stone market, we can expect to see a spotty surface coloration that was best observed by more such novel treatments in the future. Fortunately, placing a translucent white glass or plastic diffusion fil- in the case of this cobalt-diffused topaz, the identifica- ter over the light well of the microscope. A lack of tion is rather simple. color at the facet junctions was also noted in many of R EFERENCES the samples. In addition, on several stones the surface was chipped, thus revealing the colorless topaz beneath Day R.A., Vance E.R., Cassidy D.J. (1995) The topaz to mullite transformation in heating. Journal of Materials Research, Vol. 10, the colored layer. No. 11, November, pp. 2963–2969. Perhaps the most unusual gemological characteristic Johnson M.L., Koivula J.I. (1998) Gem news: Surface-treated of these surface-enhanced topazes were the anomalous topaz. Gems & Gemology, Vol. 34, No. 2, pp. 143–144. R.I. values. When tested on a standard gemological Hodgkinson A. (1998) Scottish gem lab news. Australian refractometer, the table facet displayed “normal” R.I.’s Gemmologist, Vol. 20, No. 4, pp. 154–158. (i.e., a distinct shadow edge at 1.608–1.620), whereas Phillips W.R., Griffen D.T. (1981) Optical Mineralogy: The the pavilion facets showed a broad, diffuse band, or Nonpaque Minerals. W.H. Freeman and Co., San Francisco, measured above the 1.81 limit of the refractometer. 677 pp. Thus, it appears that portions of the topaz surface might Trogler W.C. (1998) Preliminary evaluation of green versus blue topaz. Private report prepared for Charles Lawrence, CL be transformed into mullite, glass, or other substances Laboratories, 4 pp. (Day et al., 1995). According to Phillips and Griffen (1981), mullite has a refractive index in the range of 1.634–1.690, while glass can be higher or lower. However, the transformation of the surface layer into DIAMONDS either mullite or glass would not explain the wide range of R.I. readings. It is more likely that the high concen- tration of cobalt near the surface is responsible for the Diamond Deposits of Angola high R.I. readings, whereas variations in the depth of Luís Chambel ([email protected]), Technical University post-enhancement polishing could account for the of Lisbon, Lisbon, Portugal Angola has been an important and consistent source of rough diamonds, a high proportion of which are good- Properties of blue to green surface-treated topaz. quality gems, for much of this century (see figure). Color Blue to greenish blue to green Since independence from Portugal in 1975, Angola’s Color distribution Even to the naked eye, patchy surface coloration seen diamond production has been erratic. The diamond with magnification, often with green spots; white facet mining industry is currently recovering from the coun- junctions/chips visible against a white diffusion filter try’s internal political turmoil, and should enhance its Luster Resinous subadamantine luster on polished surfaces relative position in the world’s rough diamond trade Pleochroism None to faint; possibly two different shades of blue with even greater production in the next decade. Optic character Doubly refractive; biaxial, positive to undeterminable Refractive index The main diamond-producing region is located in Table facet nα = 1.608–1.610; nβ = 1.610–1.614; nγ = 1.618–1.620 the Lunda Norte area (northeast Angola), with most of (birefringence = 0.009–0.010) the production coming from alluvial deposits in the Pavilion facets Anomalous or diffuse readings; often above 1.81 Cuango River valley. Activity by unlicensed miners Specific gravity 3.50–3.63 has grown dramatically in recent years, in tandem with UV fluorescence Long-wave Inert to very faint red civil strife; however, the importance of this component Short-wave Inert to faint yellowish green or very faint red of Angolan diamond production appears to have Visible spectrum Cobalt spectrum: bands at approximately 560, 590, and reached its peak and is expected to decline with the 640 nm; strongest in blue stones, weaker in green stones arrival of political stability. Magnification Strings of parallel particles; crystals or negative crystals There are at least 700 known kimberlite pipes in with tension fractures Angola, and the potential for the discovery of addition- Chelsea filter al pipes is high. Only a few of these have been thor- Green stones Pinkish purple Blue stones Red oughly evaluated and, at present, production from these primary sources is minor compared to that from the

GEMS & GEMOLOGY FALL 1999 155 alluvial deposits. Mining started on the first kimberlite, onance (ESR), Fourier-transform infrared spectroscopy Catoca, in 1997, and others presently being evaluated (FTIR), luminescence, and other techniques in an include Camafuca-Camazamba, Camatchia, and attempt to identify the color centers responsible for Camagico. Nevertheless, for the near future, the main their coloration. Seven of the pink samples had satura- diamond production, and especially value, will still tions ranging from low to high, whereas the other six come from the alluvial deposits in the Lunda region. pink diamonds showed similar moderate saturation. At present, diamonds are the second most impor- The blue samples showed high saturation. tant mineral resource in Angola (after oil). Every effort, No new or unique ESR centers were observed in including favorably revised mining laws, is being made the pink samples, indicating that the color center to encourage foreign investment in this sector. This responsible for their pink color was not ESR active. endeavor has been successful, as numerous foreign Some correlation was apparent between the ESR P1 companies (from, e.g., South Africa, Russia, Brazil, center (single uncharged nitrogen) and the saturation Canada, and Portugal [SPE, through a 49% interest in level of the pink diamonds: The intensity of the P1 SML—Sociedade Mineira do Lucapa]) are now center increased with the strength of the pink color. exploring for, and developing, diamond mines. To- This correlation is obviously not direct, however, as ward this end, fundamental geologic and other scientif- the P1 center is also present in non-pink diamonds. ic knowledge of Angolan diamonds and their deposits A striking relationship was observed during photo- (e.g., determining the most effective exploration meth- and thermo-chromic experiments, in which the color ods, cataloguing all the deposits, and determining the saturation of the pink diamonds was altered with UV grade and quality of stones in various deposits and dis- radiation or heat treatment. These color changes were tricts) is being assembled. reflected by modifications to the concentrations of P1 and other nitrogen centers in the specimens. The dark- Studies of the Pink and Blue er heat-induced colors were accompanied by a substan- Coloration in Argyle Diamonds tial reduction in the P1 levels. A possible explanation for these observations is that J. G. Chapman ([email protected]), North Perth, the pink color center exists in more than one charge Australia; and C. J. Noble, University of Queensland, state, only one of which gives rise to the pink color. Australia The P1 center is a strong donor (of electrons) and will A suite of 13 pink and three blue diamonds from the affect the Fermi level in a diamond. This level will, in Argyle deposit were examined using electron spin res- turn, determine the population of the charge state of

156 SYMPOSIUM PROCEEDINGS ISSUE the center that causes the pink coloration. UV radia- that, if carefully executed, seemed to consistently yield tion or heat treatments may thus induce charge trans- the most pleasing final beauty—or at least so it was fers between pink color centers and nitrogen defects. assumed, because there was no way of measuring the Photo-luminescence (PL) spectra of pink diamonds results. using 633 nm excitation revealed several sharp lines. It is probable that if cutters of the past had at their One set, comprising lines at 1.871, 1.817, and 1.693 disposal means of measuring the beauty that results eV, showed a strong correlation to the depth of pink from cutting, they would not have cut diamonds to coloration. Specimens that did not conform to this match a model based on external proportions. Results correlation exhibited atypical IR spectra for Argyle of cutting can be better comprehended with a simple pink diamonds, which mostly have low levels of nitro- understanding of diamond’s most attractive feature— gen. Some of the PL peaks were at energies very simi- the reflection of light. All the bright light we see in a lar to those that have been reported (Sittas et al., 1996) polished diamond originates from above the girdle and for Ni-Si catalyzed synthetic diamonds. is reflected back to the viewer overhead. Advances in Electron paramagnetic resonance (EPR) and elec- computer-aided light analysis reveal the behavior of tron nuclear double resonance (ENDOR) analysis of light in a diamond in ways previously only suspected. the blue diamonds showed the NE2 center, which has If a diamond is to be an efficient reflector of light, the been observed in synthetic diamonds for which the cut must minimize light leakage through the pavilion. center has been proposed to be an Ni+ ion with three Computer-aided mapping helps the cutter understand neighboring nitrogen atoms (Nadolinny and how to use a combination of angles to minimize light Yelisseyev, 1994). A previously unreported EPR cen- leakage. Although only the first step in analysis of cut, ter was observed, which is consistent with an Ni− ion measurement of light leakage is fundamental to under- in a substitutional site with a N+ ion on a fourth near- standing light return. est neighbor site. This defect is found exclusively in The efficiency with which a diamond returns light Argyle blue diamonds. The presence of high concen- back to the viewer is also a measure of the precision of trations of nitrogen and hydrogen has also been report- its cutting. Since the viewer blocks some incoming ed in Argyle blue diamonds (Fritsch and Scarratt, light, a diamond’s facets must work as a team to return 1992), but it is not clear how they are related to the light that is coming from around the viewer back to nickel centers observed or to the color. the viewer. Reflective symmetry that is chaotic is The presence of nickel in Argyle blue diamonds much less efficient in light return to the viewer. High and the PL observations for the pink diamonds suggest cut symmetry, at traditional “ideal” or near-“ideal” that nickel may be involved in the pink coloration. angles, provides some of the best return of light as measured using computer-aided light analysis. Such R EFERENCES analysis enables a new understanding of diamond Fritsch E., Scarratt K. (1992) Natural-color nonconductive gray- cut—by letting light speak for itself. to-blue diamonds. Gems & Gemology, Vol. 28, No. 1, pp. 35–42. Nadolinny V., Yelisseyev A. (1994) New paramagnetic centers Detection of Irradiated Diamonds containing nickel ions in diamond. Diamond and Related Martin Haske ([email protected]), Adamas Gemological Materials, Vol. 3, pp. 17–21. Laboratory, Brookline, Massachusetts Sittas G., Kanda H., Kiflawi I., Spear P. (1996) Growth and char- acterization of Si-doped diamond single crystals grown by the The recent availability of low-cost spectrophotometers HTHP method. Diamond and Related Materials, Vol. 5, pp. with high optical resolution has led to the development 866–869. of personal computer–based spectrophotometer sys- tems (i.e., SAS2000; see http://www.SAS2000.com). The Revolution in Cut Grading When optimal Kalman filter data-processing tech- niques are used with such systems, it is possible to Al Gilbertson ([email protected]), Gem Profiles, automatically check transmittance or absorbance data Albany, Oregon for the existence of radiation damage. It has been In the 19th century and earlier, diamonds were cut in a shown repeatedly that visible absorption spectra taken variety of ways, with no generally accepted standards of at room temperature are sufficiently accurate to enable comparison. In the 20th century, many cutters adopted the detection of the radiation damage that is character- the “ideal” proportions predicted by a mathematical istic of irradiated diamonds, even in cases where that model for a round brilliant diamond. The attractiveness damage is not readily apparent with standard spec- of this model was that it provided a set of proportions trophotometric techniques.

GEMS & GEMOLOGY FALL 1999 157 With these new systems, the entire analysis can be Dispersion of light is incorporated with a wavelength- accomplished in about one minute, in contrast to the dependent refractive index. We account for partial lengthy examination procedures sometimes required reflection and refraction by calculating the polarization by current gemological techniques. In addition, these state of each ray as it moves through the virtual dia- new systems may have eliminated the need for cryo- mond. Millions of rays of different colors are traced genic freezing of the samples in the vast majority of between the modeled light source, the virtual diamond, cases. For example, the transmission spectra (collected and the modeled observer, and each ray is followed at room temperature) of treated yellow diamonds until 99.99% of its energy has exited. Most rays follow a reveal spectral features indicative of radiation damage complex three-dimensional path, with more than three when the data are processed using a Kalman filter—a reflections; and rays of different colors entering the doublet at 741–744 nm, which is not visible using same spot at the same angle generally disperse, exiting conventional spectroscopy, and peaks at 478, 497, the virtual diamond along entirely different paths. 503, and 595 nm. When standard spectrophotometric We have developed a numerical measure for bril- techniques are used at room temperature, the visibility liance called weighted light return (WLR), which uses a of these latter peaks, as with the 741 nm peak, diffuse hemisphere of white light and a weighted-aver- depends on the extent of annealing after irradiation. age observer (Hemphill et al., 1998). This lighting con- The SAS2000 system was also used to detect—for the dition emphasizes brilliance over the other appearance first time—a diagnostic absorption band at 701 nm in aspects, and the observing condition captures the light red type Ib color-treated Russian synthetic diamonds returned to a predominantly, but not strictly, face-up (see Weldon, 1999). This optical center was probably position. WLR was calculated for over 20,000 propor- missed by other spectroscopists because of the com- tion combinations, to explore primarily variations in mon use of absorbance mode displays, rather than the crown angle, pavilion angle, and table size. Variation of primary SAS2000 transmittance mode of analysis. A one parameter alone yields results in general agreement peak at 638 nm is also characteristic of these treated with previous work on this question, such as that of synthetic diamonds. Marcel Tolkowsky (1919). However, variation of two or three proportions together shows that WLR depends R EFERENCE more strongly on the combination of proportions than Weldon R. (1999) With a tweak and a smile. Professional Jeweler, on the exact value of any one of them. Vol. 2, No. 3, pp. 26, 28.

Exploring Cut and Diamond Various appearance aspects of the virtual diamond can be Appearance with the Virtual Diamond emphasized by modeling different kinds of lighting. This com- puter-generated image shows how diffuse lighting emphasizes T. Scott Hemphill, Ilene M. Reinitz ([email protected]), brilliance, while minimizing contrast, extinction, and fire. Mary L. Johnson, and James E. Shigley, GIA and GIA Gem Trade Laboratory, Carlsbad and New York We have combined modern computer graphics tech- niques, a mathematical description of the exact shape of a round brilliant, and equations for the properties that govern how light travels through diamond to pro- duce a “virtual” diamond—a computerized tool for detailed and thorough exploration of how cut affects diamond appearance. Tracing light through a virtual diamond of any chosen proportions yields either an image of that diamond (see figure), or a numerical result related to its appearance, such as brilliance, fire, or scintillation. Modeling diamond appearance with a computer allows us to control, and separately vary, each of the many proportion, lighting, and observation variables. The virtual diamond is three-dimensional, faceted all over (including the girdle), and (at present) color- less, flawless, and with perfect symmetry and polish.

158 SYMPOSIUM PROCEEDINGS ISSUE WLR values do not form a “bull’s-eye” around appearance that it is readily understood by others. some set of best proportions. Instead, rather wide Since our environment is the source of many colors, it ranges of proportions, in the right combinations, pro- is here that we must look for objects of typical colors, duce very similar WLR and a similarly bright appear- objects for which we already have names and which ance to the eye. For example, with a pavilion angle can be used to describe a specific diamond color. fixed at 40.5°, combinations as different as a 23° crown The essence of effective color communication is angle with a 65% table, and a 35° crown angle with a simplicity: the simpler the color-naming system, the 53% table, yield different image patterns but similarly easier it is for someone to comprehend the message. high WLR values. WLR also shows a complex depen- With colored diamonds, the naming of colors begins dence on some of the other proportions, particularly with color by analogy. Lilac, for example, is derived the length of the star facets. from the analogous color of the flowers of the hearty The development of a numerical expression for fire shrub (Syringa vulgaris), denoting a purple hue, with is the next step in this research. Despite the way that light to dark tone and moderate saturation. diffuse light reduces fire, images made with that light- R EFERENCE ing show some dispersed light. These results suggest Hofer S.C. (1998) Collecting and Classifying Coloured Diamonds. that the amount of this fire, as well as its position and Ashland Press, New York. nature, vary with proportions in a complex way.

R EFERENCES Is Ideal Really Ideal? Hemphill T.S., Reinitz I.M., Johnson M.L., Shigley J.E. (1998) Modeling the appearance of the round brilliant cut diamond: How the Cut Affects the An analysis of brilliance. Gems & Gemology, Vol. 34, No. 3, Beauty of Diamonds pp. 158–183. Tolkowsky M. (1919) Diamond Design: A Study of the Reflection Kurt P. Schoeckert and Randall M. Wagner, GemEx and Refraction of Light in a Diamond. E. & F.N. Spon Ltd., Systems Inc. ([email protected]), Mequon, Wisconsin London, 104 pp. For many years, diamond cutters have been debating and investigating the requirements necessary to create the Describing Diamond Colors most attractive diamond. Various instruments have been with Common Names developed to assess diamond appearance. Probably the most significant tool is an instrument (Sarin BrilliantEye) Stephen Hofer ([email protected]), Fancy that measures the facet angles on the finished diamond. Color Consultants, Stockbridge, Massachusetts This allows cutters to refine their faceting and improve Common names such as canary, lilac, champagne, and the repeatability and quality of their cuts. cognac have been used for more than two centuries in Various studies have focused on defining the the diamond industry as a simple and effective method “Ideal” cut that will best maximize the qualities of the for communicating colors (Hofer, 1998). These basic diamond. These projects have resulted in much of the color terms are essentially part of the vocabulary of industry assigning a particular arrangement of facets as everyday life, and over the years they have gradually being most desirable, although many others disagree established themselves as part of the color nomencla- with this “assignment.” ture spoken by diamond professionals. An alternative approach is to actually measure a In the modern diamond trade, the utility and sim- stone and quantify its light performance. How well plicity of common names is slowly being pushed aside does the stone disperse white light into its color com- in favor of color-measuring instruments and numerical ponents? How well does it return light from within the color-grading systems that aspire to describe diamond crown? How bright does the stone appear? Using new colors with greater accuracy and precision. However, technology (BrillianceScope Analyzer by GemEx when used correctly, common color names offer the Systems Inc.), all of these characteristics can now be retail jeweler a subtly sophisticated method for describ- quantified. Certain facet arrangements result in greater ing diamond colors that incorporates the three elements dispersion, others result in brighter stones, and still oth- that all colors possess—hue, lightness or darkness (also ers result in more scintillation. known as tone), and saturation—into a single word. This evaluation method can be applied to all dia- The purpose of a common color name is to com- mond shapes, not just round brilliants. The results are municate the appearance of a given color, or to enable more easily understood than through comparison to a someone to “think in color.” Therefore, the common particular geometric arrangement. By providing multi- name chosen must be so characteristic of the color’s ple illumination conditions and angles in the measure-

GEMS & GEMOLOGY FALL 1999 159 ment process, the instrument does not unfairly reward ence. The photographer must have scientific knowledge a single facet arrangement, and overall appearance of a subject in order to bring out significant details, but quality can be assessed. Using this measurement tech- he or she also must be able to present those details artis- nique, lapidaries are able to refine their cuts for any tically, in a pleasing photograph. Gemological pho- particular characteristic desired: brilliance, brightness, tographs can be divided into two distinct categories: dispersion, or scintillation. macrophotography and photomicrography (again, see figure). Macrophotography deals in the “macro world.” In this arena, the gem photographer prepares GENERAL GEMOLOGY images of objects such as jewelry pieces, suites of gem- stones, or gem rough. This is in essence a presentation of what the human eye would see without the aid of Visions of Gems: instrumentation. Photomicrography, on the other The Photodocumentation hand, is concerned with the “micro world.” The pho- of Gemological Subjects tomicrographer explores the surfaces and interiors of gemstones with a gemological microscope, and pre- Maha DeMaggio ([email protected]) and pares photomicrographs as illustrations useful for con- John Koivula, GIA, Carlsbad, California veying gemological information that is normally hid- In the field of gemology, it would be very difficult for den from view. Although these two disciplines have lecturers and teachers to present information without their differences in the areas of subject preparation, film the aid of photography. So too, in the publication of types, lighting, and photographic equipment, they gemological information, does the visual presentation of often work hand-in-hand to complete a gemological appropriate photo-images add greatly to any article or picture of a particular subject. book. This is because color and form are intrinsic to gemstones and gemology, and they are not easily described with words alone. For cases where color is not Laser Ablation–Inductively Coupled critical, black-and-white reproductions are inexpensive Plasma–Mass Spectrometry: A New to publish and can be very informative (see figure). Way of Analyzing Gemstones Just imagine how “dry” a gemological speech would probably be, or how lifeless an article would appear, Detlef Günther ([email protected]), without photographs. Photo-images break the monot- Laboratory of Inorganic Chemistry, Zurich, Switzerland; ony of a “talking heads” presentation, or page-after-page and Robert E. Kane, San Diego, California of text. Good-quality photographs draw people into a Energy-dispersive X-ray fluorescence (EDXRF) spec- speech, book, or article, and help to maintain their trometry has been used for years by some gemological interest. In gemology, a picture truly is worth a thou- laboratories to determine nondestructively the trace- sand words . . . and quite often much more. element composition of faceted rubies and sapphires. Gemological photography involves both art and sci- However, because of the limited sensitivity for many

The macrophotograph on the left dra- matically illustrates the partial oxida- tion of a discoid pyrite inclusion within a polished sample of Brazilian quartz (43.54 ×29.07 × 17.54 mm); photo by Maha DeMaggio. On the right, a close-up of the pyrite inclusions reveals the angular edging and structure of the pyrite inclusions; the square outline of the smaller satellite crystal exemplifies its isometric nature. Photomicrograph by John I. Koivula; magnified 40×.

160 SYMPOSIUM PROCEEDINGS ISSUE elements, the EDXRF technique is capable of measur- many opportunities to advance their knowledge and ing only a few trace elements that are useful for geo- enjoyment of gems and minerals through a variety of graphic origin determination—especially for blue sap- programs, including exciting field trips, educational phires, for which very few diagnostic elements are lectures, and exclusive social events. Examples of some detectable by EDXRF. Laser ablation–inductively cou- organized trips that the Council has sponsored include pled plasma–mass spectrometry (LA–ICP–MS) is a (1) a trip to Russia that revolved around the theme of powerful analytical technique for chemically analyzing a Russia’s gem heritage, (2) several trips to Brazil that wide variety of solid materials. It has been used for included opportunities to visit mines and meet dealers many years at laboratories around the world, in fields in pursuit of gems and minerals, and (3) field trips to other than gemology. However, largely because of several important mineral localities in the U.S. Pro- improvements in equipment design, LA–ICP–MS now ceeds from annual dues, field trips, and fund-raising has significant potential application to gemological activities support the museum’s Mineral Science materials. It could provide accurate chemical data for Section, allowing it to maintain and expand its world- determining (1) natural versus synthetic origin, (2) ori- class gem and mineral collection and gallery, organize gin of color, and (3) country-of-origin determination special exhibits, undertake mineralogical and gemolog- for several gemstones, including ruby, sapphire, emer- ical research, and generally benefit the gem and miner- ald, alexandrite, and perhaps even diamond. al community and the public at large. LA–ICP–MS has several advantages over EDXRF, The Gem & Mineral Council and the Mineral such as improved detection limits and comparatively Sciences Section recently initiated an intriguing fund- few spectral and nonspectral interferences. Therefore, raising effort entitled “Adopt-a-Mineral.” This pro- all of the trace elements of interest in gem materials— gram gives members of the public a way to have a including light elements—not only are detectable, but direct impact on the growth of the Museum’s gem and also are measurable to parts per million or even parts mineral collection, and at the same time to offer a per billion, by LA–ICP–MS. New generations of ICP means of dedicating a specimen to the person of their mass spectrometers make it possible to analyze major, choice. To further its educational outreach, the minor, and trace elements within a single analysis. Council recently produced the highly useful Photo- Although LA–ICP–MS is locally destructive, the Atlas of Minerals CD-ROM. The Council encourages extent of damage can be kept to a minimum (i.e., a few other museums and groups to emulate its methods of nanometers of sample per laser pulse). A preliminary promoting education about gemstones and supporting study using blue sapphire samples revealed that the very related projects. minor damage is difficult or sometimes impossible to see with 10× magnification. The data from this study Shedding a New Light on indicated that it should be possible to distinguish sap- Medieval Darkness phires from different geographic locations using LA–ICP–MS. However, for this technique to be useful Sabine Häberli ([email protected]), Historisches in gemology, several challenges must be overcome. An Museum Basel, Switzerland; Henry A. Hänni and extensive database of LA–ICP–MS analyses must be Lore Kiefert, SSEF Swiss Gemmological Institute, obtained from a sufficiently large and credible collection Basel, Switzerland of gemstones of known geographic origin or, as appro- The treasury of Basel Cathedral in Basel, Switzerland, priate, synthesis. Gemological application will also is fascinating not only for the artistic quality and rich- require specialized computer programs for multivariate ness of its pieces, but also for its long history. Through analysis to recognize meaningful correlations among the donations and occasional purchases during the 500 large quantities of data that this technique generates. years from the early 11th century until the advent of the Reformation in the early 16th century, several The Gem & Mineral Council hundred goldworks were collected in the cathedral of the Bishopric of Basel. These crosses, monstrances, and Danusia Niklewicz, Former President—Gem & Mineral various other religious artifacts were used during Mass. Council, Los Angeles County Museum of Natural Before the Reformation, Basel Cathedral had the rich- History, California est church treasury in the region that is today southern The Gem & Mineral Council of the Natural History Germany and Switzerland. Museum of Los Angeles County, founded in 1985, is The treasury had, until 1996, only been described the world’s foremost gem and mineral museum support in terms of its historical, cultural, and artistic impor- and public programming organization. Members have tance. Since 1996, the SSEF Swiss Gemmological

GEMS & GEMOLOGY FALL 1999 161 Institute, in collaboration with the Historisches Stress” case, and colorful minerals such as malachite Museum Basel, has examined the gem materials in 14 and azurite delve into the mysterious world of sec- selected items using the nondestructive techniques of ondary minerals and chemical alteration in the optical microscopy and laser Raman microspectrome- “Changing Identity” case. try (see, e.g., Hänni et al., 1998). We were surprised to The Gallery also takes a fascinating look at the role find so many gemstone imitations, such as glass and that life, especially microbial life, has played in trans- doublets with colored layers, in historic pieces of art forming Earth into a blue planet—in contrast to its with outstanding metal work. Among the natural gem- lifeless cousins Venus and Mars. Increasingly, life is stones we encountered were several varieties of quartz being recognized as a geologic force, not only creating (rock crystal, amethyst, citrine, carnelian, agate, and and sustaining our atmosphere and oceans, but also ), dark blue and light blue sapphires, ruby, creating rock formations (i.e., limestones) and partici- red almandine garnet, diamond, and turquoise. In two pating in the genesis of many important mineral important objects we identified gemstones that were deposits. Among these are the diamonds found in presumably unusual for that period, such as peridot, eclogites from Russia and emeralds from the black spinel, fluorite, aquamarine, and emerald. shales of Colombia. The study demonstrated that Raman microspec- It is hoped that the Gallery of Earth Sciences will trometry is a reliable method for nondestructively inspire all visitors with the wonders of our planet, and identifying gem materials in historical objects. We provide a better understanding of what transpires be- hope that art historians will consider employing this neath our feet. useful analytical technique in the future. R EFERENCE A Color Communication System Hänni H.A., Schubiger B., Kiefert L., Häberli S. (1998) Raman for Gemstones investigations on two historical objects from Basel Cathedral: The Reliquary Cross and Dorothy Monstrance. Gems & Sakda Siripant ([email protected]), The Gem and Gemology, Vol. 34, No. 2, pp. 102–113. Jewelry Institute of Thailand, Bangkok A method that quantifies the color of a gemstone and Dynamic Earth: Inco Ltd. Gallery is accepted by the gem trade has long been an elusive of Earth Sciences goal. There are obvious advantages to such a color Terri Ottaway ([email protected]) and Fred Wicks, communication system in the commercial side of Royal Ontario Museum, Toronto, Ontario, Canada gemology. For example, any parameters obtained by the system could be included on colored gem certifi- Planet Earth as a System of Systems is the theme of the cates in much the same manner as color grade is new 14,000 square foot Gallery of Earth Sciences at the included on diamond certificates. In addition, the Royal Ontario Museum. The main system is plate tec- numerical color data could be used in inventory con- tonics, which provides a simple but powerful story line trol, buying and selling, repairs, appraisals, and for that links geologic processes across and within the globe, communication through the Internet, which has and blends them into a unified version of the earth. become an important medium for the global gem With the emphasis on process, rather than on sim- trade. Moreover, researchers of color treatment could ple observation and classification, rocks and minerals use such a system for the description of gems before are displayed according to their geologic environments and after treatment. in four large cases that dominate the mineral hall. The color communication system suggested here is Spectacular gem crystals and materials are particularly based on L∗a∗b∗ color space (see, e.g., Billmeyer and powerful tools for highlighting stories of mineral for- Saltzman, 1981), and the determination of several mation. Large crystals of aquamarine, topaz, and tour- parameters that are derived from spectrophotometric maline illustrate the pegmatite environment, associated measurements of a gemstone. The parameters used, with minerals derived from molten rock in a case and their definitions, are: called “Chilling Out.” Agates and amethyst, in a case called “In and Out of Hot Water,” are some of the L∗—Metric lightness function more familiar minerals precipitated from aqueous solu- a∗—Colorimetric values on the red-green axis of tions. Garnets, jade, and sapphires are among the beau- L∗a∗b∗ color space tiful products of metamorphism found in the “Under b∗—Colorimetric values on the yellow-blue axis of

162 SYMPOSIUM PROCEEDINGS ISSUE L∗a∗b∗ color space three techniques can be measured from any surface U′—Metric chromaticity coordinates of CIE 1976 that is 0.01–1 mm2. The authors have established a (CIE L∗U∗V∗) database of reflectance infrared and Raman spectra for V′—Metric chromaticity coordinates of CIE 1976 250 natural and synthetic materials; this database is (CIE L∗U∗V∗) supplemented by diffuse reflectance spectra in the x,y—Chromaticity coordinates of CIE 1936, where x UV/Vis/NIR range for several color varieties of these = X/(X+Y+Z) and y = Y/(X+Y+Z); X,Y,Z = minerals. tristimulus values These methods may be used either singly or in combination to identify gem materials, differentiate The objective of this research project was to construct natural gems from their synthetic counterparts, and a color communication system for gems that describes detect gemstone treatments. For example, the tech- color characteristics in the form of numbers for the values niques can provide a clear distinction between natural a∗b∗, as derived from spectrophotometric measurements and synthetic diamonds, and can also identify filled dia- obtained with an Image Spec spectrophotometer. The monds. The samples do not require special preparation, parameters U′ and V′ are calculated from a∗b∗, which or removal from jewelry or (if rough) from their may be correlated to established color systems such as the matrix. Accordingly, these methods are particularly Munsell system. By means of computer programming useful for the investigation of archeological specimens, developed by EMPA, St. Gallen, Switzerland, 56 pages of antiques, historical and religious objects, museum spec- tables have been produced for converting the x,y chro- imens, and mounted jewelry where destructive tech- maticity coordinates of CIE 1936 into a∗b∗ and U′V′ val- niques or the unmounting of the stone from its setting ues for each color chip in the Munsell system. Munsell are unacceptable. color chips of the same value were systematically located in the U′V′ diagram and L∗a∗b∗ color space according to their color coordinates. The conversion tables, the adapt- Gem Quality Index (GQI) ed U′V′ diagrams, and the a∗b∗ color chart serve as the T. E. Tashey Jr. ([email protected]), Gem Quality Institute, communication tools by which a gem’s color characteris- Chicago, Illinois tics are correlated to established color systems in order to provide a visual representation. Evaluating a gemstone by using the 4Cs of color, clari- ty, cut, and carat weight can be carried one step further R EFERENCE by considering a fifth important attribute—rarity. There Billmeyer F.W. Jr., Saltzman M. (1981) Principles of Color is a complex interrelationship between the 4Cs and Technology, 2nd ed. John Wiley & Sons, New York. rarity. The Gem Quality Index (GQI) is a proposed system that rates the relative importance of color, clari- Reflection and Scattering Spectroscopy ty, cut, and carat weight, with respect to the rarity fac- for Nondestructive Gem Identification tor, to produce a single, overall quality rating for any particular gemstone. Essentially it assigns different per- L. I. Tretyakova, Russian Mineralogical Society, centages to the different attributes, by rating their rela- St. Petersburg, Russia; N. B. Reshetnyak, All-Russian tive importance. Different varieties of the same gem- Geological Institute, St. Petersburg; and Y. V. stone will obviously receive a different mix of percent- Tretyakova, Russian Ocean Geology Research Institute, ages for their attributes. St. Petersburg Examples are illustrated in the accompanying fig- Three spectroscopic methods can be used to analyze ure. Part A shows how the rarity factor is determined nondestructively the vibrational and electronic spectral for white and off-white diamonds, in terms of weight- properties of gem materials. Reflectance infrared spec- ed percentages for carat weight, color, clarity, and cut. troscopy and laser Raman microspectrometry are rela- Such diamonds weighing 0.01–1.19 ct (part B) are tively simple methods for obtaining vibrational spec- weighted at 25% for color and 15% for rarity. In con- tra, which can be used to identify the gem or mineral trast, fancy-colored yellow diamonds of the same size species. Electronic spectra are obtained by diffuse range (part C) have increased factors for color (45%) reflectance spectroscopy in the ultraviolet/visible/ and rarity (25%). Further, as the size of a gemstone near-infrared (UV/Vis/NIR) range, 200–2500 nm; increases, the rarity factor also increases (e.g., to 30% the absorption lines are related to impurity or defect- for white and off-white diamonds weighing 3.00–3.99 impurity color centers. The spectra obtained by all ct; part D). Accordingly, the rarity component based

GEMS & GEMOLOGY FALL 1999 163 These charts show how the various attributes (i.e., color, clarity, cut, and carat weight) of a gem can be rated with respect to rarity using the Gem Quality Index.

on size increases to a maximum of 65% when a white to off-white diamond weighs over 100 ct. The GQI GEMSTONE MARKETING system can also be applied to colored stones, as illus- trated in part E. Achievements from Patents, Designs, The intent of the Gem Quality Index is to create a and Trademarks Relating to meaningful scale from 0 to 10, with 10 being the the Gem Trade top quality and designated as Exceptional. Sub- Nicholas Delre, GIA Gem Trade Laboratory, New York sequent grades will be designated as Top Gem1 and Top Gem2; Gem1, Gem2, and Gem3; Commercial1 and Intellectual property, a concept that began about four Commercial2; and finally, Promotional1 and Promo- centuries ago, consists in part of industrial properties tional2. (e.g., utility patents, design patents, and trademarks).

164 SYMPOSIUM PROCEEDINGS ISSUE Main classifications of jewelry items within patents and trademarks.

U.S. system International system

Utility patents Class 63 Class A44 Design patents Class D11 Class 11 Trademarks Class 14 Class 14

Source: Patents Assist CD ROM (U.S. Department of Commerce, Patent and Trademark Office, Washington, DC, March 1999).

Generally speaking: (1) a utility patent protects the way an article is used and how it works; (2) a design patent protects the way an article looks; and (3) a trade- mark is an identifying word, phrase, symbol, or design that distinguishes the goods or services of one party from those of others. As more countries have become involved in developing and producing industrial prop- erties, particularly in the latter half of this century, there has been an explosion in the number of these proper- ties. The accumulated patent literature offers an exten- sive reservoir of probably the most up-to-date source of information on technological progress for new products and processes in every technology. In addition, indus- trial properties have become sources for new innova- tions and improvements on old concepts. Industrial properties are primarily grouped under classes and subclasses found within major classification systems (i.e., the U.S. and international patent classifi- cation systems; see table). Persons wishing to view the classification system in depth and obtain patents or trademarks, should contact the U.S. Patent and Trademark Office, General Information Services, at 800-786-9199 or visit their Web site at http://www.uspto.gov.

Gem Enhancements and Their Effect on Pricing Richard Drucker ([email protected]), Gemworld International, Inc., Northbrook, Illinois Diamond faceting styles have been patented for decades. This The latter part of the 1990s was a critical time for the partial example of a patented diamond cut by M. Asscher gem industry, due to controversies over gemstone (Joseph) was issued in 1902 and made public in 1903. enhancements and disclosure. Because of consumer uncertainty over disclosure, the industry saw many set- These safeguards offer certain rights and protection that backs in gemstone pricing. allow the inventor to exclude others from making, Emeralds were hardest hit by the enhancement using, or selling the same invention, usually for a limit- issues. Consumer awareness of emerald enhancements ed period of time. (such as Opticon) reduced confidence levels and

GEMS & GEMOLOGY FALL 1999 165 brought dramatic price decreases. On average, the er feels it is more important to promote optical effects price of extra-fine-quality one-carat emeralds dropped such as brilliance, dispersion, and dichroism, which are by 23% from their high in 1995, and good- to fine- enhanced by halogen lighting. Consequently, jewelers quality emeralds declined by about 50%. The abun- rarely use daylight-equivalent illumination to display dance of commercial-quality, heavily treated emeralds the “true” color of gems. resulted in a price decrease of about 65% for this mate- The use of daylight-equivalent lighting is encour- rial during this four-year period. aged to bring out the best color appearance of gem- Partly as a result of enhancement issues, ruby prices stones in the retail environment. The following light- declined over the past eight years. The initial drop in ing factors should be taken into consideration when price resulted from an abundance of supply, as new designing the most effective lighting system. material from Mong Hsu (Myanmar) flooded the mar- ket. The attractive appearance, low price, and large • The amount of incident luminous intensity is supply of the (commonly heat treated) material con- referred to as illuminance (measured in lux or foot- tributed to an overall reduction in ruby prices. candles). Questions regarding the acceptability of the glass filling • The daylight-equivalent color of the light, oriented present in some of the heat-treated rubies caused prices to international standards, is D 55 and D 65 (i.e., to drop further over the past two years. Overall, the 5,500 K and 6,500 K, respectively). price of extra-fine-quality rubies has fallen approxi- • Color rendering in comparison to natural daylight is mately 36% since 1991; fine quality is down about designated by the Color Rendering Index (C.R.I.). 45%, good quality is down 51%, and commercial qual- • Accent lighting and single-point lighting may be ity dropped 54%. As in the case for emeralds, the lower used to enhance the appearance of light reflected quality grades suffered a greater price decrease. by gemstones. If the industry is to survive the aggressive techno- logical advances of gemstone enhancement, we must • Daylight-equivalent supplementary lighting may be push for greater education and full disclosure. Through used in combination with halogen lamps. these means, confidence can be restored and profitabil- • For optimal eye comfort, flicker can be eliminated ity will return. from fluorescent lamps with electronic ballast devices. Better Understanding of Gems and • Jewelers should have the ability to dim the bright- Daylight for Enhanced Work and ness of fluorescent lamps to meet requirements for Business Success effective presentation. Manfred Eickhorst ([email protected]), System A better understanding of the versatility of modern Eickhorst, Hamburg, Germany fluorescent lamps and other light sources will enable sellers to demonstrate the unique color beauty of gem- In the wholesale gem business, buying and selling cus- stones, and thus decisively contribute to the success of tomarily take place under conditions of natural day- their business. light, at north-facing windows. Alternatively, fluores- cent lighting is used, with the color of the light as simi- lar to natural daylight as possible. For both near-color- Software Management Systems less and colored diamonds, bulbs with a color tempera- for Jewelers ture of approximately 6,500 kelvin (K) traditionally are Don Greig ([email protected]), ARMS USA, used, whereas for colored stones, 5,500 K bulbs are Henderson, Nevada preferred. The wholesale gem business, therefore, employs different kinds of artificial light depending on The biggest problem facing retailers is poor liquidity, the gemstones involved. caused by a lack of management ability, lack of profit, Jewelers, however, typically sell all of their gems excessive investment in stock, and a majority of stock using one kind of light, a halogen lamp with a color that just doesn’t sell. In other words, “No retailer ever temperature of approximately 3,000 K. This light is had problems with stock that sells with the right profit appreciably more yellow than natural daylight and, margins and the right quantities!” accordingly, “falsifies” the color of gemstones. If retailers are to control their business, rather than Although halogen light may enhance the color of be controlled by their business, four critical areas need rubies, it is detrimental to the color of sapphires, emer- attention: stock, suppliers, staff (sales), and self (man- alds, and near-colorless diamonds. As a rule, the jewel- agement decisions). To be successful, jewelers need to:

166 SYMPOSIUM PROCEEDINGS ISSUE 1. Recognize and manage fast- and slow- retail jeweler has never faced more diverse, intense selling inventory. competition from so many new sources. At the same time, advertising costs have skyrocketed and the num- 2. Understand the factors that affect profit, ber of media outlets has multiplied, further diluting the and learn how to implement profit- power of advertising dollars. enhancing techniques into the business. Communication—as distinct from advertising— 3. Initiate a refined reordering system that means getting free coverage by the media: TV, radio, ensures that the best-selling merchandise and print. You don’t need money, power, or a particu- is always in stock. lar position to take advantage of media marketing. Media coverage is media marketing—simply receiving 4. Create usable management plans that media coverage creates importance. Rather than spend- work. ing big money to create elaborate brochures, jewelers and manufacturers should take advantage of media 5. Implement training and plans to enhance marketing. Strategies should be designed to enhance the staff’s cohesiveness as a team. the image of products, persons, and events. By main- 6. Learn how to effectively manage suppli- taining a local focus, a company can create synergy ers and create stronger working relation- among the media. ships, and learn to develop the store in Media-savvy promotions are entertaining and excit- the areas that are not performing to ing. The hardest part is “hooking” or catching the defined expectations. media’s attention—you can do this with creativity. A lack of understanding of how the news media 7. Control debt. operates explains why so many promotions fail. The media strives for more distinction, greater circulation, A good software management system will help and higher ratings. In the jewelry trade, products and manage a retailer’s physical stock efficiently. It will services can be marketed with the same goals in mind. allow access to information and reports that identify For example, Swiss jeweler Bucherer generated strengths and weaknesses, and it should become the some of its best colored gemstone sales on minimal retailer’s tool for producing more profit by buying advertising in 1988. The results were achieved through right and marking up correctly. media interest in an 18.50 ct cat’s-eye alexandrite that was toured through a half dozen of Bucherer’s stores Publicity and Profits vs. and promoted as the rarest, most spectacular jewel in Advertisements and Expenses the world. The company’s size and money were important, but not as important as their creativity and Henry F. Kennedy (phone/fax 732-462-6043), H. F. packaging. Kennedy: The Museum Exhibit, Freehold, New Jersey Advertising and editorial coverage involve different How can retail jewelers achieve bigger and faster sales values. Indeed, advertising often incites the adversary while conserving advertising expenses? How can they mode in each of us. However, carefully placed media stand out from the competition and find greater name marketing creates and packages ideas that will be inter- recognition, both in the jewelry industry and in the esting to reporters and exciting to the audience, and community? By developing communication skills with that will produce measurable results. the media, retailers can increase their exposure without financial expenditure. Building a Profitable Appraisal Business Many second- and third-generation jewelers can trace their retail roots to a relative who was in the Steven Knight ([email protected]), watch repair business. As the economy boomed after The Jewelry Judge, Hamilton, Ontario, Canada; World War II, watch repairers gradually found them- Ralph S. Joseph, The Jewelry Judge, Princeton, selves selling more diverse jewelry products. Because New Jersey; and Barry Block, The Jewelry Judge, business was steady, and most of the advertising was by Garden City, New York word of mouth, they never really had to concern Appraising has developed into an important profession themselves with paid advertising or publicity. They within the jewelry industry. Today qualified individu- had little time or need to develop communication skills als are finding more career opportunities in apprais- with the media. ing—either independently or through retail jewelry The times are changing . . . and quickly! Today’s establishments or franchise opportunities—provided

GEMS & GEMOLOGY FALL 1999 167 they take the necessary steps to build their credentials introduced new systems, procedures, and ways of com- and develop effective marketing strategies. municating in valuation science. Consumers are becoming more aware of profes- Rapid global change requires appraisers to under- sional credentials, and will seek out appraisers who stand markets outside of their own, while thinking have them. Building credentials can increase consumer beyond the boundaries of current resources. Since confidence, while adding to an appraiser’s knowledge change brings opportunity for growth, the professional base. After completion of gemological coursework, an anticipates and adapts to change. A competitive edge is appraiser’s training should be continued in any of a acquired by the appraiser who has expertise in value number of specialty appraisal courses available, specifi- methodologies, an understanding of current appraisal cally in valuation science. standards, and the willingness to investigate a novel In order to generate business, effective marketing approach to establishing value in specialty markets strategies include print, electronic, and other media (e.g., jadeite, antique and estate jewelry). Also, a pro- advertising. Counter displays that detail your services fessional appraiser must be comfortable working in can be distributed and displayed at jewelry stores that international markets and have a sound understanding benefit from your association with them. Sales person- of how global economics impact valuations. Although nel at these stores will gladly recommend your profes- some appraisers turn to prepared price lists to estimate sional services as a qualified appraiser. values, this approach will be inadequate in the future. A new frontier in the appraisal profession is the Precise pricing and value justification will be best con- concept of franchising. The advantages of franchising ducted with the aid of global networking between include proven marketing strategies, financial and busi- educated professionals sharing the same goals, stan- ness planning and support, protected territories, name dards, and exacting market research. recognition, and group benefits to independent busi- ness owners. The “while you watch” philosophy of the What Does That Emerald Look Like? appraisal franchise appeals to a growing number of clients who are uncomfortable leaving jewelry in the How to Communicate Color and possession of jewelers or appraisers whom they do not Appearance across Continents know. The Jewelry Judge Appraisal Centers are currently Randall M. Wagner ([email protected]), the only such franchised offering. Centers are now GemEx Systems Inc., Mequon, Wisconsin operating, and are expanding into all major markets in the U.S. and Canada. Communicating the color and appearance of gem- stones across distances is a complicated problem. Although various color communication systems have Jewelry Appraising: Professionalism been developed, using color samples—such as those in in the New Millennium the GIA GemSet, GemDialog, or World of Color packages—to describe a gemstone’s color neglects Anna M. Miller ([email protected]), Master Valuer many of the aspects that are integral to the stone’s International, Pearland, Texas appearance (i.e., color uniformity, windowing, extinc- Education in valuation science is the foundation of pro- tion, brilliance, and scintillation). Photography can fessional jewelry appraising, and the number one ele- provide useful images of gemstones, but the color ren- ment in an appraiser’s long-term success. Completion dered in a photo is complicated by several factors dur- of a program of structured, academic valuation study is ing the exposure and development process. Although the most important of the many qualifications necessary electronic cameras can significantly reduce the effort to becoming a professional jewelry appraiser. The call involved in capturing and transmitting images, they for full professional appraiser status comes from an face the same problems as conventional cameras. Just as international demand for intelligent and ethical valua- each film type records color differently, each camera tions, logical data analysis, and skilled use of current val- records its own “version” of color; just as the develop- uation procedures. To answer this need, comprehensive ment process affects the stone’s color, each computer diploma courses in gem and jewelry appraising have monitor displays color differently. Although the cam- been developed and are now being given worldwide in era and monitor can both be calibrated for acceptable workshops, college residence classes, and by correspon- color representation, this adjustment is lost on another dence. These advanced jewelry appraising courses have user’s system.

168 SYMPOSIUM PROCEEDINGS ISSUE However, if an imaging spectrophotometer is used active carving centers. However, interest and apprecia- to measure the complete spectral response of a gem- tion of carved gems soon waned, and the output stone, the corresponding image can be consistently dis- reduced to a trickle, notwithstanding contributions played on any monitor in the world, provided the from the Fabergé House in the late 19th and early 20th chromaticity coordinates for that monitor are known. centuries. During the 1700s and 1800s, gem carvers The spectrophotometer measurement is used to adjust were scarce in most major European cities. the color of the image on the computer screen. As a After the Franco-Prussian War ended in 1871, gem result, the Internet can now be used to communicate carving took hold in the region of Idar-Oberstein, both the color and appearance of a gemstone across Germany. For the remainder of the 19th century until continents in minutes. the present time, gem carving has been an important part of the jewelry industry in Germany, as carvers took full advantage of the Industrial Revolution. Octavio Negri, an Italian-American trained in JEWELRYJEWELRY Rome, was influential in New York during the early part of the 20th century. Beth Benton Sutherland Engraved Gems: 6000 BC– 2000 AD apprenticed with him from 1921 to 1926, becoming a very accomplished carver over the next 30 years; her Ute Klein Bernhardt, Wausau, Wisconsin favorite medium was . The art of gem carving, which is as old as civilization, In Europe after World War I, August Rudolf Wild had a humble, utilitarian beginning 8,000 years ago of Idar-Oberstein was considered the best carver in the with the carving of clay stamp seals. During this time, world; he received a Gold Medal in the category of known as the Protoliterate Period, there was no writ- Fine Art at the 1937 World’s Fair in Paris. During the ten language and the carved seals functioned as signa- 1950s, Richard Hahn’s Idar-Oberstein studio began tures for contractual purposes and for identifying per- reproducing great Greek and Roman cameos in the sonal property. As religion evolved, the carved seals Renaissance style. His work was purchased primarily took the form of decorative and functional amulets. by American collectors, who created a revival of Although the amulets continued to serve as readily carved gems in the U.S. This in turn brought about available signatures, they also were used as protection the evolution of self-taught gem carvers in America. against malaise. Today, Bernd Munsteiner of Stipshausen, Germany, Five thousand years ago, a major change occurred carves gems into abstract and revolutionary designs. He when carvers began to create cylindrical seals using is a major influence on the many young carvers who very soft gems instead of clay. Later, as written lan- will lead gem carving into the next millennium. guage came into being, carvers began using harder, more precious gems for their seals. Gem materials Products of Endangered and carved into a multitude of different designs (e.g., Threatened Species Used in Jewelry stamps, amulets, or cylinder seals) have been coveted by the elite through the centuries. Charles I. Carmona ([email protected]), Guild Historically, gem carving has been a cyclical art. Laboratories, Inc., Los Angeles, California; and With each reemergence the art reached a higher level, Jo Ellen Cole, GIA, Carlsbad, California attaining perfection (even by current standards) during The use of animal products in jewelry and decorative the Greek, Etruscan, and Roman periods. After the arts has brought about steep declines in the populations Roman period, very little gem carving was done until of many species, the greatest of which occurred in the the early Renaissance, when the art was rediscovered 1970s and 1980s. In response to this ecological calami- and enjoyed great popularity for the next 200–300 ty, the United Nations drafted the Convention on years. During this time, members of the nobility (such International Trade and Endangered Species (CITES). as Italy’s Medici family) owned studios and were the Cross-border trade in endangered species—those employers and patrons of the artisans. Very fine work presently in danger of extinction—was banned by 123 was produced by a number of masters. These royal signatory nations under the terms of CITES in 1989. gem collections were housed in “Treasure Rooms,” By most measures, the CITES ban has been a success, which became the forerunners of today’s museums. as populations of some endangered species are recover- At the onset of the 18th century, Russia had two ing to the point that affected countries are calling for a

GEMS & GEMOLOGY FALL 1999 169 controlled loosening of the ban and a resumption of hold in the history of a country or a family. Even trade in the related animal products. today, items such as portrait jewelry (as in cameos), Among the numerous endangered or threatened “mother’s rings” (with the birthstones of the children), species are many whose products are encountered in class rings, and sports championship rings continue the jewelry, including ivory producers (elephant, walrus, tradition of jewelry with a purpose. hippopotamus, and whale), corals, and turtles. Some threatened species—those that will become endangered at Platinum—The Metal of the Millennium current rates of exploitation—are part of the pearl indus- try (e.g., specific species of oyster, abalone, and conch). Jürgen J. Maerz ([email protected]), Platinum Guild In the environmentally aware 1990s, fashion has International USA, Newport Beach, California also had an effect, as demand has diminished in some Worldwide demand for platinum jewelry has increased cultures for those products associated with the indis- tremendously over the last five years. In 1998, the jew- criminate and unsustainable hunting or harvesting of elry industry accounted for 2.4 million ounces (or animal species. At the same time, the market is adapt- 40%) of the platinum consumed worldwide—up from ing by finding alternatives such as vegetable ivories 1.6 million ounces in 1993. In the U.S., domestic net (tagua/corozo and doum nuts), plastics, and other platinum jewelry usage has soared from 20,000 ounces manufactured materials. in 1991 to 220,000 ounces in 1998. China is the Most governments recognize the importance of world’s fastest growing platinum jewelry market, with rebuilding and maintaining the natural resources and 620,000 ounces consumed in 1998—representing a the bio-diversity of their region. Eco-tourism, a grow- 70% increase over 1997. ing industry in many developing nations, has encour- The bridal market continues to drive international aged this philosophy. Balancing the survival of the demand for this rare and precious metal. In Japan, plat- various species with centuries-old traditions of trade in inum accounts for 95% of the catego- their products is the challenge that we face at the ry and 80% of the wedding band category. In the U.S., beginning of the new millennium. platinum is now a key element of the bridal market, accounting for a 25% market share. In its purest form, platinum is soft, so it needs to be Jewelry with a Purpose alloyed for jewelry purposes. Platinum/cobalt is a fine Susan Eisen ([email protected]), Susan Eisen Inc., casting alloy. Platinum/iridium is a versatile alloy that El Paso, Texas is suitable for fabricating, as well as casting. Jewelry is treasured as a symbol of love and emotion, Platinum/ruthenium is used when machining proper- and serves as an adornment or fashion item to convey ties are desired. Many other specialty alloys, such as beauty, pride, or celebration. At the same time, jewelry heat-treatable alloys, are being developed. may serve a functional purpose. Besides the most com- New technology is improving the workability of mon example of time keeping (i.e., wristwatch or platinum. The laser welder has become the preferred pocket watch), jewelry has been used for the following tool for performing the most intricate welding without purposes: damage to surrounding diamonds or colored stones. Because of its natural white color, durability, and • Identification of medical conditions flexibility, platinum lends itself to a multitude of • Passing down heirlooms in families (royal or designs, and can be used to enhance the beauty of otherwise) gemstones—especially diamonds. As a result, it has • Secretly communicating love and admiration become increasingly popular among the world’s top • Commemorating important sporting events jewelry designers. The tremendous growth in the pop- • Exalting the crowning of a king ularity of platinum over the last few years has truly made it the metal of the millennium. • Commemorating a trade treaty agreement • Providing an extravagant representation of a country (e.g., royal regalia) Designing Colored Diamond Jewelry Over the centuries, many such items have held Etienne Perret ([email protected]), Etienne symbolic or historical significance, and are therefore Perret & Co., Camden, Maine preserved in museums worldwide. Such pieces are held Natural fancy-color diamonds are the celebrities of the in high esteem not only because of their beauty and diamond world. Almost everyone knows of the blue craftsmanship, but also for the important place they Hope diamond and the “canary” yellow Tiffany dia-

170 SYMPOSIUM PROCEEDINGS ISSUE mond. Only the elite of the diamond jewelry designers 1996 to increase awareness and appreciation of gem art have had the good fortune to design jewelry set with through education, promotion, and marketing, and to these exceedingly rare gems. Most often these colored support the needs of gem artists and related profession- diamonds were set in museum-like pedestal settings. als. The specific objectives of GANA are: For the designer wishing to incorporate colored dia- • To facilitate a closer communication between all monds into jewelry, color-treated diamonds offer a solu- segments of the gem art, colored stone, and jew- tion to the rarity and expense of natural-color diamonds. elry industries Past Color Treatment of Diamonds. Diamonds have been color treated for almost 100 years. The first dia- • To educate members by sharing information monds were color treated by Sir William Crookes in • To educate the public about gem art 1905 by exposure to radium salts, which caused them • To establish, promote, and maintain the highest to turn dark green. However, the diamonds were high- ethical standards among its members and ly radioactive and took many years to “cool down” throughout the gem art industry enough for jewelry use. • To protect the gem art industry and ultimate Today’s Diamond Color Treatments. Nowadays consumer from fraud, abuse, misrepresentation, most diamonds are color treated in an electron accelera- and deceptive advertising tor, where exposure to a beam of electrons causes them to turn a greenish hue. Then, through annealing, the Artist members must demonstrate substantial com- diamonds are colored yellow, orange, or brown. The mitment to the medium of “hard gemstone” (i.e., 5 or diamonds do not become radioactive and therefore can above on the Mohs scale), and must have demonstrated be used in jewelry immediately after treatment. In addi- the development and execution of unique and original tion to green, yellow, orange, and brown, color-treated concepts, including but not limited to facet, sculptural, diamonds are currently available in red, purple, blue, and carving designs. They also must have demonstrated and black colors. originality of artistic form and excellence of technique Painting with Color. Color-treated diamonds offer in the execution of the designs. the designer the versatility of color combined with the The 25 current artist members of GANA work in a brilliance, durability, and caché of diamonds. Designers wide variety of styles encompassing multiple disciplines, can now use colored diamonds in the same way that both singly and in combination, including sculpture, painters use paint on a canvas. If they want to cover an carving, faceting, and intarsia. Their extraordinary cre- area with blue, then blue diamonds can be pavé set or ations are the culmination of each artist’s working for invisibly set in whatever shape is desired. If they are years in relative isolation, coupled with the recent unifi- looking for a stripe of purple, then a row of channel-set cation of their talents through GANA. The formation purple diamonds are in order. of GANA signals the birth of a modern renaissance in Today’s Designers. A handful of innovative German lapidary art. In the next millennium, both those who designers used color-treated diamonds in the early ‘90s. produce and those who appreciate gem art will grow More recently, however, I have found only a few dramatically in numbers. GANA will be at the forefront designers who use color-treated diamonds as a major of this growth. For more information, visit the Web design element in their jewelry, despite searching the site http://www.gemartists.org. large tradeshows in Basel, New York, Tokyo, and Las Vegas. In the new millennium, perhaps more designers will enjoy the increased opportunities—and sales— afforded by color-treated diamonds. PEARLS

Gem Artists of North America: Natural Abalone Pearls: The Renaissance of Modern Rare Organic Gems Lapidary Art Sarabeth Koethe, Gem Sciences International, Inc., Sherris Cottier Shank ([email protected]), Deer Park, California; and K.C. Bell, San Francisco, Gemscapes, Southfield, Michigan; Glenn Lehrer, California Lehrer Design, San Rafael, California; and Dr. T. Nishikawa noted that pearls were used in Japan John N. Hatleberg, Big Gems, New York for ornamental purposes more than a thousand years Gem Artists of North America (GANA) was formed in ago (Kunz and Stevenson, 1908). There is evidence

GEMS & GEMOLOGY FALL 1999 171 that at least some of these pearls were abalone pearls: According to the U.S. Federal Trade Commission Large abalone pearls, for example, are found in images (FTC), it is deceptive to use the unqualified word pearl to of Buddha made in 300 A.D. identify any type of cultured pearl. Ninety-five percent The Haliotis abalone pearl has a long and turbulent of “pearls” sold today are cultured, yet most of the lan- history. These abalones are distributed along areas of guage in the pearl and jewelry industries does not include the Pacific Coast from Alaska to Mexico. There are the word cultured when referring to cultured pearls. actually eight pertinent species: Haliotis fulgens, Haliotis rufescens, Haliotis cracherodii, Haliotis discus, Haliotis kamtschatkana, Haliotis corrugata, Haliotis sorenseni, and Cultured Abalone Mabé Pearls Haliotis walallensis. Gem-quality abalone pearls are quite from New Zealand rare, with estimations of one gem pearl per approxi- Liz McKenzie ([email protected]), Empress Abalone mately 500,000 commercially gathered animals. Ltd., Christchurch, New Zealand Unlike the direct relationship between mollusk color and resulting pearl color of both the Pinctada radi- While abalone produce pearls naturally, these are very ta and Pinctada martensii, the various species of abalone rare, exceedingly costly, and irregular in shape, color can yield pearls of multiple distinct colors within the distribution, and surface. New Zealand’s indigenous same univalve mollusk. Theories relate this phe- abalone, Haliotis iris, produces beautiful multi-hued nomenon to diet and water temperature. cultured abalone mabé pearls. These cultured blister pearls feature symmetrical shapes, spectacular luster, R EFERENCE saturated color, and improved surfaces. Kunz G.F., Stevenson C.H. (1908) The Book of the Pearl. Dover At Empress Abalone Ltd., abalone mabé pearls are Publications, Mineola, New York. grown at an on-shore aquaculture facility located on Stewart Island, across the Fouveaux Strait from the “A Pearl Circus”: Origin, Variety, South Island of New Zealand. Abalone stock for and Enhancement of Pearls implantation is obtained annually from three sources: the company’s natural fishing quota, other companies’ Gina Latendresse ([email protected]), American annual quotas, and spat culture. Pearl Co., Nashville, Tennessee Abalones are hemophiliacs—they have no clotting Pearls have been known for centuries as the “Queen of mechanism in their blood. However, they do have Gems.” To understand this majestic yet gentle gem, one extremely strong muscular viscera, and are very mobile must know her origin, her many varieties, and her even when confined. Thus, it was very difficult to per- enhancements. Nineteen species of fresh- and saltwater fect the technical procedure of implanting these uni- mollusks were presented in the “Pearl Circus,” including valve gastropods with hemispherical beads. corresponding natural and cultured pearls from some of After the nuclei have been implanted, the abalone these species. Special “guest stars” included a 2 pound are placed in grow-out tanks of clean, circulating sea- (about 1 kg) mollusk that was approximately 70 years old; water, where they are monitored. Once every three a 21.7 mm round shell bead nucleus for pearl culture; days, the abalone are fed a fresh mix of seaweed, gath- imitation “conch pearls,” with the same chemical proper- ered from the Great Southern Ocean. ties as their natural counterparts; an 18.35 mm roundish Two years after implantation, a mabé of 0.3–0.6 natural abalone pearl; and a 185.5 ct natural “Melo Pearl.” mm thickness forms on the inner surface of the Pearl dissection is one way to examine the thickness abalone’s shell. The abalone is harvested, and the blister of the nacre in bead-nucleated cultured pearls, and the is cut from the shell with a special surgical instrument. distinctive growth structure of tissue-nucleated cul- Following removal of the nucleus, the blister is filled tured pearls. Some enhancements, such as dye and irra- with polymer and fitted with a back of polished diation, are also readily apparent with pearl dissection. abalone (paua) shell. The finished cultured abalone Considerable advances have been made in irradiation mabés, which range from 9 to 20 mm in diameter, are from 1981 to the present. next ready for grading and marketing. Natural pearls form when an irritant (a shell-like or The abalone mabés are marketed in “Gem,” “A,” organic protein substance) is introduced by chance into and “B” grades. Colors range from a most-valued the soft tissue of a mollusk. It is a myth that a grain of “azure” through blue, green, purple, lavender, magen- sand (an inorganic substance) begins a pearl. Cultured ta, pink, orange, and “silver.” The luster of the multi- pearls form when an irritant (a shell-like or organic pro- hued nacre ranges from a mirror-like surface to a dull tein substance) is introduced by human intervention. sheen. Surface smoothness also varies.

172 SYMPOSIUM PROCEEDINGS ISSUE ruby, sapphire, alexandrite, and garnets, among others) SYNTHETICS AND SIMULANTS continue to be run by the government, practically all other kinds of synthetic and enhanced gems were pro- Synthesis and Enhancement of Gems in duced by private companies, including some supported Russia in the Second Half of the 1990s by a combination of domestic and foreign capital. In Vladimir S. Balitsky ([email protected]), Institute the second half of the 1990s, several dozen such joint of Experimental Mineralogy, 142432 Chernogolovka, ventures were created. The competition between them Moscow District, Russia led to overproduction and, ultimately, an abrupt drop in prices, so that many of these companies were forced In the second half of the 1990s, Russian laboratories to go out of business. This was particularly the case produced both traditional and new synthetic gems and with synthetic amethyst, opal, emerald, and alexandrite, simulants, and Russian manufacturers also performed as well as with enhanced topaz. The next decade should many gemstone enhancements. In particular, Russian witness the production of larger synthetic diamonds producers grew commercial quantities of synthetic (both colored and colorless), as well as hydrothermal ruby, sapphire, emerald, alexandrite, spinel, malachite, synthetic ruby, sapphire, and alexandrite. New methods opal, and turquoise; as well as synthetic amethyst, cit- of gem enhancement will also be developed. rine, and brown, blue, green, and pink quartz. They also produced large amounts of the simulants yttrium aluminum garnet (YAG), gadolinium gallium garnet An Imitation of Black Diamond: (GGG), cubic zirconia (CZ), and yttrium aluminum Artificial Black Cubic Zirconium Oxide oxide. Russian scientists used treatment methods to change the color of topaz (from colorless and brown to Jean-Pierre A. Chalain ([email protected]), SSEF Swiss blue), beryl (from yellow-green heliodor to blue aqua- Gemmological Institute, Basel, Switzerland marine), agate (from gray and white to red, yellow, Black as a color has been in vogue for the past several green, blue, and black), chalk-like turquoise (from years. This trend has reached the jewelry trade and, as a white to “sky” blue), lazurite (from green to dark result, large quantities of black diamonds have been set blue), nephrite (from brownish to pale green, green, in various types of jewelry. In 1998, SSEF checked and white), and quartz (from colorless to “smoky” and more than 3,000 carats of purported black diamonds greenish yellow). for color authenticity. During these examinations, sev- New developments in Russia during the second eral pieces of artificial black zirconium oxide (cubic half of the 1990s include the production of yellow (up zirconia—CZ) were identified. to 4 ct) and colorless (up to 1 ct) synthetic diamonds; Black diamond usually occurs as single crystals with blue and red synthetic beryl; colorless and colored syn- numerous black graphite inclusions (see, e.g., Kam- thetic moissanite; pink synthetic quartz, synthetic merling et al., 1990). Carbonado is a natural sintered amethyst-citrine (ametrine), synthetic amethyst–green polycrystalline aggregate of minute diamond crystals quartz, and polychrome synthetic quartz; as well as with a granular-to-compact structure. It is always synthetic aventurine and bright yellow-orange synthet- opaque and may be black, brown, or dark gray; less ic “langaisite” (lanthanum gallium silicate). Virtually on commonly, it is “brick” red to pale purple and light hiatus since the 1960s, Russia is again seeing the com- green. Bort is a black polycrystalline form of diamond mercial production of flux and hydrothermal synthetic (Haggerty, 1998). Carbonado and bort are sometimes ruby and sapphire. Russian scientists also have devel- called “black diamond” by the trade. oped new technologies for the surface-coloring of both Faceted black CZ can be easily separated from colorless and pale-colored sapphires to appear blue, of black diamond by its rounded facet junctions, absence topaz to appear blue and bright green, of quartz to of inclusions, dark brown appearance when viewed appear blue and pink, and of CZ to appear black and with a powerful fiber-optic light, and specific gravity opaque white. Of particular interest today is the devel- (Kammerling et al., 1991). For round-brilliant-cut opment of technology to lighten the color of yellow- samples, a comparison of the diameter to the weight is to-brown natural diamonds. sufficient to distinguish black CZ from black diamond. At the same time, there has been considerable X-ray fluorescence (EDXRF) analyses were per- change in the structure and volume of production of formed on several of the suspect black specimens. The synthetic and enhanced gems within the last five years. analyses revealed a predominance of zirconium, with Although the largest enterprises for producing crystals lesser amounts of yttrium and hafnium, which con- for technical applications (synthetic colorless quartz, firmed that these samples were CZ.

GEMS & GEMOLOGY FALL 1999 173 R EFERENCES unusual. At the 1999 JCK Orlando Show and the AGS Haggerty S.E. (1998) Diamond-carbonado: Geological implica- Conclave in New Orleans, C3 personnel demonstrated tions and research—industrial applications. Proceedings of the 5th the doubly refractive nature of moissanite, one of the NIRIM International Symposium on Advanced Materials (ISAM most fundamental and easiest means of identification. It ’98), Tsukuba, Japan, pp. 39–42. was impressed upon the participants that care must be Kammerling R.C., Kane R.E., Koivula J.I., McClure S.F. (1990) taken to ensure that the inside of the stone is viewed An investigation of a suite of black diamond jewelry. Gems & Gemology, Vol. 26, No. 4, pp. 282–287. from several directions so that the one singly refractive Kammerling R.C., Koivula J.I., Kane R.E., Fritsch E., direction in the stone is avoided. Other identifying fea- Muhlmeister S., McClure S.F. (1991) An examination of non- tures demonstrated include the high dispersion, specific transparent “CZ” from Russia. Gems & Gemology, Vol. 27, gravity (3.20–3.24), polished girdles, and needle-like No. 4, pp. 240–246. inclusions (see, e.g., Nassau et al., 1997; Nassau, 1999). The vast majority of participants observed moissanite Educating the Jewelry Industry for the first time and left with greater confidence in about Lab-Created Moissanite their ability to identify it with a loupe. Jeff Hunter ([email protected]), Charles & Colvard R EFERENCES (formerly C3 Inc.), Morrisville, North Carolina Nassau K. (1999) Moissanite: A new synthetic gemstone material. Journal of Gemmology, Vol. 26, No. 7, pp. 425–438. C3 Inc. began worldwide distribution of laboratory- Nassau K., McClure, S.F., Elen, S., Shigley J.E. (1997) Synthetic created moissanite gemstones (henceforth all references moissanite: A new diamond substitute. Gems & Gemology, Vol. to moissanite or moissanite gemstones are to laborato- 33, No. 4, pp. 260–275. ry-created materials) in mid-1998. Because some of the physical and optical properties of diamond and Colors of High-Pressure moissanite are similar, especially those that are com- monly used for identification purposes in gemology Synthetic Diamonds (e.g., refractive index), the possibility of misidentifica- Hisao Kanda ([email protected]), National Institute tion exists. for Research in Inorganic Materials (NIRIM), Tsukuba, Charles & Colvard is positioning moissanite as a Ibaraki, Japan unique synthetic gemstone, with high brilliance, fire, It is well known that yellow and blue synthetic dia- and luster, that is very durable and exclusive through monds are synthesized in the presence of nitrogen and its limited availability. Most importantly, though, the boron, respectively, by conventional high-pressure company expects full disclosure, so that moissanite is techniques. Other colored synthetic diamonds also can sold and purchased as moissanite. As the volume of be produced by the introduction of certain elements, moissanite in the marketplace grows, accurate identifi- such as nickel and cobalt, into the diamond lattice. cation throughout all channels of the jewelry industry When nickel and cobalt impurities are incorporated will become even more important. Charles & Colvard into the diamond lattice during growth, they can is expanding its extensive education program for the become optically active centers, giving rise to a variety jewelry trade through new initiatives by both interna- of absorption and luminescence bands. These bands are tional distributors and selected U.S. retailers. related to the concentrations and structure of nitrogen To better understand the awareness level of present in the synthetic diamonds. The nitrogen impu- moissanite in the jewelry industry, in May 1999 mem- rities are incorporated in a single substitutional form, bers of the C3 sales team surveyed 19 retail jewelry but they are aggregated with heat treatment. The stores in North Carolina: 10 department stores, three nitrogen concentrations can be controlled by the com- franchised jewelry chains, and six independent jewelry position of the metal alloy in which the diamonds stores. Representatives of only eight stores were able to grow. reach a conclusion on the identity of a near-colorless A nickel impurity produces a brownish yellow round brilliant set in jewelry, and five of them mistak- color when high concentrations of nitrogen are present enly identified the moissanite as diamond. Eleven in the crystal. With decreasing concentrations of nitro- stores had no testing instrumentation (including ther- gen, the color changes to green and then to brown. mal probes) available. In addition, less than 5% of the When the nitrogen-containing crystals are heated at 200+ total participants at three of C3’s moissanite edu- temperatures above 1500ºC under high-pressure con- cational seminars this spring had ever seen moissanite ditions, both the brownish yellow and the green colors gems. also become brown. The heat-treated diamonds lumi- These observations, while a concern, are not nesce intense green to UV radiation.

174 SYMPOSIUM PROCEEDINGS ISSUE A cobalt impurity does not have a strong absorption has reportedly been found near Tunduru, Tanzania; band, so no characteristic color results from the incor- their color was attributed to traces of vanadium poration of this element into the diamond structure, (Johnson and Koivula, 1996). Chemical analyses although luminescence is produced. Diamonds that (EDXRF) revealed approximately 0.18 wt.% V2O3 in have high concentrations of nitrogen and contain the light green synthetic stones, which is similar to that cobalt are yellow due to the nitrogen impurity. When found in the natural light green chrysoberyl. However, such diamonds are heated, the color will fade, but only the natural stones contain additional trace ele- strong yellow luminescence will be observed with UV ments (such as Fe, Ga, and Sn) in detectable quantities. radiation. Selected references on these topics are pre- The iron content (0.2–0.3 wt.% Fe2O3) seems to influ- sented below. ence the depth of color in the natural light green chrysoberyl. The bluish green synthetic sample con- R EFERENCES tained much more vanadium than its natural equivalent Collins A.T., Spear P.M. (1982) Optical active nickel in synthetic (approximately 1.5 wt.% V O versus 0.3 wt.% V O ). diamond. Journal of Physics D. Applied Physics, Vol. 15, No. 12, 2 3 2 3 pp. L183–L187. A pink color in chrysoberyl is attributed to the Collins A.T., Kanda H., Burns R.C. (1990) The segregation of incorporation of titanium (approximately 0.2 wt.% nickel-related optical centers in the octahedral growth sectors TiO2), probably into the aluminum lattice sites. As is of synthetic diamond. Philosophical Magazine B, Vol. 61, No. 5, the case for synthetic pink sapphire (e.g., “Ti-sap- pp. 797–810. phire”; Johnson et al., 1995), we suggest that the pink Kanda H., Lawson S.C. (1995) Growth temperature effects of color of synthetic chrysoberyl is caused by trivalent impurities in HP/HT diamonds. Industrial Diamond Review, titanium (Ti3+). Since trivalent titanium is rarely found Vol. 55, No. 565, pp. 56–61. in natural terrestrial environments, this might explain Lawson S.C., Kanda H. (1993) An annealing study of nickel point defects in high-pressure synthetic diamond. Journal of why natural pink chrysoberyl has not yet been found. Applied Physics, Vol. 73, No. 8, pp. 3967–3973. R EFERENCES Lawson S.C., Kanda H., Watanabe K., Kiflawi I., Sato Y., Collins A.T. (1996) Spectroscopic study of cobalt-related opti- Johnson M.L., Mercer M.E., Fritsch E., Maddison P., Shigley J.E. cal centers in synthetic diamond. Journal of Applied Physics, Vol. (1995) “Ti-sapphire”: Czochralski-pulled synthetic pink sap- 79, No. 8, pp. 4348–4357. phire from Union Carbide. Gems & Gemology, Vol. 31, No. 3, pp. 188–195. Johnson M.L., Koivula J.I. (1996) Gem news: Nonphenomenal Bluish Green, Light Green, and Pink vanadium-bearing chrysoberyl. Gems & Gemology, Vol. 32, Synthetic Chrysoberyl No. 3, pp. 215–216. Michael S. Krzemnicki ([email protected]) and New Hydrothermal Synthetic Gemstones Lore Kiefert, SSEF Swiss Gemmological Institute, Basel, Switzerland from Tairus, Novosibirsk, Russia Gem-quality yellow, colorless, and color-change syn- Sergey Smirnov ([email protected]) and thetic chrysoberyl (synthetic alexandrite) have been Rudolf Mashkovtsev, United Institute of Geology, available for some time in the gem trade. Here we pre- Geophysics and Mineralogy SB RAS, Novosibirsk, sent the first gemological data on bluish green (one Russia; Victor Thomas, Vadim Maltsev, Iline Alexey, sample), light green (three samples) and pink (three and Sergey Demin, Tairus, Novosibirsk, Russia; and samples) synthetic chrysoberyl. The light green and the Blinova Anastasiya, Novosibirsk State University pink samples were donated to SSEF by Kyocera Corp., Hydrothermal synthesis resembles the process of natu- Japan. ral gemstone formation more closely than any other Microscopic investigations revealed that the bluish synthesis technique (e.g., flame-fusion, Czochralski, green and light green synthetic chrysoberyls were prac- flux). Yet, until the early 1990s, synthetic emerald and tically inclusion-free. Minute bubbles or particles were different colors of synthetic quartz were the only found only in the pink samples. Growth structures hydrothermally grown gem materials that were commer- were not observed. With long-wave UV, the bluish cially available on the world market. Since 1990, how- green and light green samples showed a weak red fluo- ever, Tairus has been developing hydrothermal meth- rescence, whereas their natural counterparts may show ods of commercially producing several varieties of a strong red glow due to traces of chromium; the pink corundum and beryl (other than emerald). samples did not fluoresce. Sapphires doped with Cr and Ni were the first The bluish green and light green synthetic chryso- hydrothermal synthetic gemstones to be commercially beryls closely resembled the natural chrysoberyl that produced by Tairus. The addition of varying amounts

GEMS & GEMOLOGY FALL 1999 175 Gemological properties of Tairus hydrothermal synthetic sapphires and aquamarine.

Cr-Ni hydrothermal synthetic sapphire Fe -Ti hydrothermal synthetic sapphire Hydrothermal synthetic aquamarine

Color Almost any color Very dark violetish blue Light to dark greenish blue

Coloring agent Ni2+, Ni3+, and Cr 3+ in Fe2+–Ti4+ charge transfer, Fe2+ and Fe2+–Fe3+ charge different combinations possibly Ti3+ transfer Pleochroism Weak to strong; in some Strong Weak to strong cases, none

R.I. (NΩ) 1.765–1.769 1.767–1.768 1.578 –1.580

R.I. (Nε) 1.757–1.761 1.759–1.760 1.571–1.577 Birefringence 0.007– 0.010 0.008 0.004– 0.008 S.G. 3.98–4.03 4.00 2.65–2.70 Luminescence to UV Inert to moderate Very weak to short-wave UV; Inert radiation (depending on color) inert long-wave UV Inclusions and optical Clean, or abundant dark flake-like Gaseous inclusions surrounded Cellular or linear graining; flake- inhomogeneities crystalline inclusions; “fingerprints” by fissures; patchy color like aggregates of pyrrhotite or and swirl-like graining distribution pyrite and topaz; “fingerprints” Visible spectra 377, 556, and 599 nm bands 386 and 589 nm bands due to 800 and 375 nm bands due to due to Ni2+ and Ni3+; 469, 475, Fe3+ absorption and Fe2+–Ti4+ to Fe2+ and Fe3+; shoulder at and 690 nm lines due to Cr3+ charge transfer 650 nm due to Fe2+–Fe3+ charge transfer; line near 400 nm due to Ni3+

of Cr3+, Ni2+, and Ni3+ to the corundum crystal struc- and to Fe2+–Fe3+ charge transfer. Synthetic aquama- ture results in a broad spectrum of attractive colors (see rine (again, see table) can be distinguished from its nat- Thomas et al., 1997, for details). The most important ural counterpart by its characteristic growth patterns diagnostic features of Cr-Ni hydrothermal synthetic and, sometimes, by the presence of flake-like aggre- sapphires, as well their gemological properties, are gates of Ni-pyrrhotite and Ni-pyrite. Traces of Ni3+ shown in the table. are consistently present in the synthetic aquamarine, The first dark blue and violetish blue hydrothermal from contamination by the growth environment. The synthetic sapphires with a coloration caused by Fe-Ti Ni3+ does not affect the color significantly, but it can impurities (the elements that cause the blue color in be detected by a low-intensity absorption peak near natural sapphires) were produced in mid-1998. These 400 nm. synthetic sapphires (again, see table) can be readily dis- The synthetic gemstones recently produced by tinguished from natural sapphires through microscopic Tairus are significant to the trade, and foreshadow the observation of their patchy color distribution and their importance of hydrothermal synthesis in the future. distinctive gaseous inclusions. R EFERENCE Synthetic hydrothermal aquamarine was also first Thomas V.G., Mashkovtsev R.I., Smirnov S.Z., Maltsev V.S. grown by Tairus in the mid-1990s. Like its natural (1997) Tairus hydrothermal synthetic sapphires doped with counterpart, synthetic aquamarine owes its light green- nickel and chromium. Gems & Gemology, Vol. 33, No. 3, pp. ish blue color to the presence of small amounts of Fe2+ 188–202.

176 SYMPOSIUM PROCEEDINGS ISSUE Index to Presenters at the Third International Gemological Symposium

Editor’s note: FS indicates featured speaker, oration in Argyle diamonds, 156–157 P indicates panelist, WR indicates War Room Chatelain, Elizabeth (WR) Branding, 130–131 panelist, and PS indicates poster session presenter Chatham, Thomas (P) The role of laboratory-grown mate- (only the senior author is indexed). rials in the 21st century, 118–119 Christenson, Clint (PS) Red beryl, 140 A Cohen, Sean (FS) A manufacturer’s perspective, 55 Akamatsu, Shigeru (FS) The present and future of Akoya Cook, Frederick A. (PS) Gemstones and global tectonics, cultured pearls, 73–74 140–141 Alfillé, Eve (P) Marketing pearl jewelry in the next millen- Crown, Angelique (PS) Tanzanite mining update—A fol- nium, 122–123 low-up to the mine disaster of April 9, 1998 at Merelani, Altobelli, Cos (WR) Appraisals, 132–133 Tanzania, 141–142 Austein, Eric (WR) Diamond cut, 134–135 Cushman, Thomas A. (PS) The short life and death of a sapphire boomtown, 142 B Balitsky, Vladimir S. (PS) Synthesis and enhancement of D gems in Russia in the second half of the 1990s, 173 David, Sheldon (WR) Branding, 130–131 Barbosa, Heitor D. (PS) Copper tourmaline from Paraíba, Davidson, Terry (P) The leadership role of fine jewelry in Brazil: Reopening of the mine, regional exploration, the 21st century, 120–121 138 Deljanin, Branko (PS) Mining and heat treatment of Barguirdjian, Henri (P) The leadership role of fine jewelry “geuda” sapphire at Ratnapura, Sri Lanka, 142–143 in the 21st century, 121 Delre, Nicholas (PS) Achievements from patents, designs, Bernhardt, Ute Klein (PS) Engraved gems: 6000 BC–2000 and trademarks relating to the gem trade, 164–165 AD, 169 DeMaggio, Maha (PS) Visions of gems: The photodocu- Blumer, Anne (WR) Appraisals, 132–133 mentation of gemological subjects, 160 Bowersox, Gary W. (PS) Central Asia: A prime source of Destino, Ralph (P) The leadership role of fine jewelry in gemstones for the 21st century, 140 the 21st century, 120 Boyajian, William E. (Valedictory Address) Meeting the Dirlam, Dona (P) The importance of electronic network- millennium in the gem & jewelry trade, 8–13 ing in the 21st century, 128–129 Bridel, Robert (P) Critical issues in the 21st century, 125 Drucker, Richard (P) The importance of electronic net- Bridge, Edward (P) Manufacturing and marketing diamond working in the 21st century, 128–129; (PS) Gem jewelry in the 21st century, 116–117 enhancements and their effect on pricing, 165–166

C E Calnon, John (FS) Perspective of an electronic retailer, Edelstein, Cindy (FS) The American designer jewelry 109–110 movement: Where it came from and where it’s going, Carmona, Charles I. (PS) Products of endangered and 105–106 threatened species used in jewelry, 169–170 Eickhorst, Manfred (PS) Better understanding of gems and Chalain, Jean-Pierre A. (PS) An imitation of black dia- daylight for enhanced work and business success, 166 mond: Artificial black cubic zirconium oxide, 173–174 Eisen, Susan (PS) Jewelry with a purpose, 170 Chambel, Luís (PS) Diamond deposits of Angola, 155–156 Emmett, John L. (FS) Fluxes and the heat treatment of Chapman, J. G. (PS) Studies of the pink and blue col- ruby and sapphire, 90 –92

GEMS & GEMOLOGY FALL 1999 177 F Hansawek, Rak (PS) Kanchanaburi sapphires and their Farook, Aly (PS) An examination of the state of the gem reaction to heat treatment, 147–148 trade in Sri Lanka, 143–144 Hansen, Niels Ruddy (WR) Diamond cut, 134 Feather, Russell C. (PS) The Smithsonian Institution’s Hasenfeld, Hertz (FS) The New York diamond market, corundum conundrums, 144 44–45 Fischer, Jeffrey (WR) Disclosure, 136–137 Haske, Martin (PS) Detection of irradiated diamonds, Forester, Nanette (WR) Disclosure, 136–137 157–158 Fortunoff, Esther (WR) Branding, 130–131; (WR) Dis- Hemphill, T. Scott (PS) Exploring cut and diamond closure, 136–137 appearance with the virtual diamond, 158–159 Fortunoff, Helene (P) The leadership role of fine jewelry Hofer, Stephen (PS) Describing diamond colors with com- in the 21st century, 120–121 mon names, 159 Fritsch, Emmanuel (P) The role of laboratory-grown mate- Htun, Han (PS) Identifying sources of Burmese rubies, rials, 118–119; (PS) Classification of gem opals using 148–149 Raman spectroscopy, 145 Hucker, Douglas (P) Critical issues in the 21st century, 124–125 G Hunter, Jeff (PS) Educating the jewelry industry about lab- Gardner, Cecilia (WR) Disclosure, 136–137 created moissanite, 174 Garland, Mary I. (PS) Characterization of inclusion suites in sapphire using Raman spectroscopy, 145–146 I Garzon, Charles (PS) Understanding emerald enhance- Ionescu, Corina (PS) Gem vesuvianite and grossular from ments, 145 the Vata area, Apuseni Mountains, Romania, 139 Ghergari, Lucretia (PS) Jasper occurrences in the Brad area, Izhakoff, Eli (P) Critical issues in the 21st century, 124–125 Apuseni Mountains (Romania) 139–140 Gilbertson, Al (WR) Appraisals, 132–133; (WR) Diamond J cut, 134–135; (PS) The revolution in cut grading, 157 Jacques, Susan (P) Marketing opportunities in the 21st Goldberg, Eve (P) Manufacturing and marketing diamond century, 126 jewelry in the 21st century, 116–117 Janowski, Benjamin (FS) The U.S. diamond industry, 56–57 Goldberg, William (WR) Diamond cut, 134–135 Janse, A. J. A. “Bram” (FS) Diamonds from Australia, Goyal, Manuj (PS) Pyrope-almandine garnets from various 37–39; (P) Diamond production in the 21st century, mining areas in Orissa, India, 147 114–115 Greig, Don (PS) Software management systems for jewel- Johnson, Andrew (P) Marketing opportunities in the 21st ers, 166–167 century, 126–127 Gruber, Martin (P) Manufacturing and marketing diamond Johnson, Mary L. (WR) Disclosure, 136; (PS) Character- jewelry in the 21st century, 116–117 ization of some emerald filling substances, 149–151 Grunstein, Laurence (P) Marketing opportunities in the Joseph, Ralph (WR) Appraisals, 132 21st century, 126–127 Gübelin, Thomas (P) The leadership role of fine jewelry K in the 21st century, 120 Kanda, Hisao (PS) Colors of high-pressure synthetic dia- Günther, Detlef (PS) Laser ablation–inductively coupled monds, 174–175 plasma–mass spectrometry: A new way of analyzing Kane, Robert E. (FS) Ruby and sapphire occurrences gemstones, 160–161 around the world, 60–61 Gurney, John J. (FS) Changes and new developments in Kato, Hidetaka (FS) Today and tomorrow in the Japanese Africa, 34–36 jewelry market, 58 Kay, Scott (P) Marketing opportunities in the 21st century, H 126–127; (WR) Branding, 130–131 Haas, Eli (FS) The diamond distribution system, 52; (WR) Kennedy, Henry F. (PS) Publicity and profits vs. advertise- Branding, 130–131 ments and expenses, 167 Häberli, Sabine (PS) Shedding a new light on medieval Kiefert, Lore (PS) Red taaffeite, 151 darkness, 161–162 Knight, Steven (PS) Building a profitable appraisal business, Hänni, Henry A. (FS) Fissure-filled emeralds and their 167–168 detection, 93–94; (PS) Fissure fillings in emeralds: A Koethe, Sarabeth (PS) Natural abalone pearls: Rare organic comparison of different identification methods, 146–147 gems, 171–172

178 SYMPOSIUM PROCEEDINGS ISSUE Koivula, John I. (Special Session) see Moses, T. M. Muller, Andy (FS) Cultured South Sea pearls, 77–79 Krzemnicki, Michael S. (PS) Bluish green, light green, and pink synthetic chrysoberyl, 175 N Kwiat, Sheldon (P) Manufacturing and marketing diamond Naftule, Roland (WR) Disclosure, 136–137 jewelry in the 21st century, 116–117 Nassau, Kurt (FS) An overview of gemstone treatments, 95–96; (P) The role of laboratory-grown materials in L the 21st century, 118–119 Lagos, Steven (WR) Branding, 130 Niklewicz, Danusia (PS) The Gem & Mineral Council, 161 Larson, William (FS) Review of gem localities in North America, Russia, and Southeast Asia, 64–65 O Latendresse, Gina (P) Marketing pearl jewelry in the next Okoemov, Uri (P) Diamond production in the 21st centu- millennium, 122–123; (PS) “A pearl circus”: Origin, ry, 114–115 variety, and enhancement of pearls, 172 Ottaway, Terri (PS) Dynamic Earth: Inco Ltd. Gallery of Levinson, Alfred A. (P) Diamond production in the 21st Earth Sciences, 162 century, 114–115 Owens, Philip A. (PS) Infrared spectroscopy as a discrimi- nant between natural and manufactured glasses, 152 M Machida, Hisashi (P) The role of laboratory-grown materi- P als in the 21st century, 118 Paget, Douglas (FS) Canadian diamond production: A gov- Maerz, Jürgen J. (PS) Platinum—The metal of the millen- ernment perspective, 40–42 nium, 170 Palmieri, Don (WR) Appraisals, 132–133 Magner, Stephen (FS) Perspective of a high-end jeweler, Panjikar, Jayshree (PS) Rudraksha—A spiritual organic 107–108 gem, 152 Manning, Gerald (FS) Snake oil or cedar oil: Have your Peach, James L. Sr. (FS) Freshwater pearls: New millenni- colored stones been enhanced, and are you telling the um—New pearl order, 75 tale? 70 Pearson, Carl (FS) The effect of international economic Marquart, James (P) Critical issues in the 21st century, 124 developments on the diamond market, 50 Martin, Anna (P) Manufacturing and marketing diamond Perret, Etienne (PS) Designing colored diamond jewelry, jewelry in the 21st century, 116 170–171 Mârza, Ioan (PS) The Techereu gemological field, 151 Picton, James (P) Diamond production in the 21st century, Mastoloni, Frank (P) Marketing pearl jewelry in the next 114 millennium, 122 Poli, Leopoldo (P) Marketing opportunities in the 21st Mattice, Gabrièl (PS) Demantoid garnet from the Ural century, 126–127 Mountains, Russia, 151–152 Pruwer, Marcel (FS) The Antwerp diamond sector, 46 McClure, Shane F. (Special Session) see Moses, T. M.; (FS) Identification challenges of the new millennium, 86–87 R McKenzie, Liz (PS) Cultured abalone mabé pearls from Rapaport, Martin (FS) Diamond economics: A dynamic New Zealand, 172 analysis, 51; (P) The importance of electronic network- Miller, Anna (WR) Appraisals, 132; (PS) Jewelry appraising: ing in the 21st century, 128 Professionalism in the new millennium, 168 Reinitz, Ilene M. (FS) Identifying diamond treatments, Misiorowski, Elise B. (FS) Early 20th century jewelry, 88–89; (WR) Diamond cut, 134–135 99–100 Roberto, Francesco (WR) Disclosure, 136 Mitchell, M. A. (FS) The Indian perspective: Challenges Root, Kirk (WR) Appraisals, 132–133 and new developments, 47– 48 Rossini, Ralph (P) Marketing pearl jewelry in the next Molina, Al (WR) Branding, 130 millennium, 122–123 Morris, Robert Lee (FS) Adapting classic designs to mod- Rossman, George (WR) Disclosure, 136–137 ern markets, 103 Rothman, Glenn (WR) Branding, 130–131 Moses T. M., Shigley J. E., McClure S. F., Koivula J. I., and Rothschild, Gerald L.S. (FS) The developing market in Van Daele M. (Special Session) Observations on GE-pro- China, 59 cessed diamonds: A photographic record, 14–22 Rothwell, James (P) Diamond production in the 21st cen- Mouawad, Fred (P) The importance of electronic net- tury, 114–115 working in the 21st century, 128–129 Runci, Matthew (P) Critical issues in the 21st century, 124

GEMS & GEMOLOGY FALL 1999 179 S T Samuel, Joseph H. Jr. (FS) The marketing of period jewel- Takahashi, Koichi (P) Marketing pearl jewelry in the next ry during the 20th century and into the next millenni- millennium, 122 um, 101–102 Tashey, T. E. Jr. (PS) Gem quality index (GQI), 163–164 Sauer, Daniel André (FS) South America: The birth of a Taylor, Matthew C. (PS) The first California gem tourma- new jewelry-consuming market, 71–72 line locality, 153–154 Scarisbrick, Diana (FS) Chaumet—A very Parisian jeweler, Tempelsman, Maurice (Valedictory Address) Globalization 97–98 and technology: Dynamic forces for the 21st century, Scarratt, Kenneth (FS) The identification of ruby and sap- 2–7 phire, 82–83 Tenhagen, Joseph (WR) Appraisals, 132–133 Schmetzer, Karl (FS) Distinguishing natural from synthet- Tian, Liangguang (PS) Sapphires from Shandong, China, ic emeralds, 84–85 154 Schnitzer, Shmuel (FS) Diamond manufacturing and distri- Tivol, Thomas (FS) Can a family business compete in the bution: The Israeli perspective, 49 21st century jewelry market? 112 Schoeckert, Kurt P. (PS) Is Ideal really ideal? How the cut Tretyakova, L.I. (PS) Reflection and scattering spec- affects the beauty of diamonds, 159–160 troscopy for nondestructive gem identification, 163 Schwarz, Dietmar (FS) Emeralds—Recent developments and projected changes in supply, 62–63 U Shank, Sherris Cottier (PS) Gem artists of North America: Underwood, Thom (PS) Surface-enhanced topaz, 154–155 The renaissance of modern lapidary art, 171 Shigley, James E. (Special Session) See Moses, T. M.; (FS) The ongoing challenge of diamond identification, V 80 –81; (PS) California benitoite: A proven mineable Van Daele, Mark (Special Session) see Moses, T. M. reserve and new gemological data, 152–153 Von Sternberg, Richard (WR) Diamond cut, 134–135 Siripant, Sakda (PS) A color communication system for Voorhees, Jacques (P) The importance of electronic net- gemstones, 162–163 working in the 21st century, 128 Shor, Russell (FS) Retail markets and the growing global significance of branding, 53–54 W Smirnov, Sergey (PS) New hydrothermal synthetic gem- Wagner, Randall M. (PS) What does that emerald look stones from Tairus, Novosibirsk, Russia, 175–176 like? How to communicate color and appearance across Sobolev, N. V. (FS) Russian diamond sources, 43 continents, 168–169 Speisman, Robert (WR) Diamond cut, 134–135 Wan, Robert (FS) The Tahitian cultured pearl: Past, pre- Stuller, Matthew (FS) Meeting customer needs, 111 sent, and future, 76 Suleman, Abe K. (FS) Colored stone sources in Africa and Madagascar, 66–67 Suwa, Yasukazu (FS) Will there be another chance for busi- Y ness in the Asian colored stone jewelry market? 68–69 Yurman, David (FS) Creating a luxury brand, 104

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